Guide to New York State tax issues for VITA volunteers

Many aspects of the NYS income tax are analogous to the corresponding aspects of the federal income tax system, but there are some important differences relevant to VITA clients, which I have highlighted at this page.

One of the most important differences between the federal and New York income tax systems for our clients is that most NYS tax credits are REFUNDABLE, while most Federal tax credits are NON-refundable. However, many policy analysts and politicians from both parties have called for more refundable federal credits, particularly for education and health insurance, so it's possible that the nation may follow New York's lead by enacting more refundable credits in the future.

Another significant policy difference between the federal and New York tax system is that New York gives a special earned income tax credit to non-custodial parents who meet their child support obligations.