In the state of New York, they rate at about the nation’s highest rate for taxes. They have income tax, sales tax, property taxes, and they also push estate taxes. NYGates located in Brooklyn, New York would be happy to help you with any questions you have about business taxes or more. The state of New York is a place that has some of the highest percentages for taxes in the country.
What Are Taxes
Taxes are something that is taken out of paychecks, added to food purchases, added items for sale and many more things. This is money that is paid to the government to aid in support of schools and roads, for example. Taxpayers dollars also give support in the textbooks for schools, the school buildings, and the school bus. Another way that the tax dollars are used is by funding police officers and firefighters.
It is very important that taxes get paid. People file taxes every year and either get income tax returns or need to pay into the government. It is all put into categories and brackets to decide what is paid and what is owed. There are ways that can help you when filing taxes, such as tax deductions.
Depending on what the income is for the individual taxpayer, the rates vary from 4-8.8%. Obviously, the lower rate is for the lower-income and the higher rate is for the higher income. The average median income per household in New York is a little below $60,000.
When it comes to deductions it depends on your status in which you file. Whether you are married, single, head of household, and so on. Here are some examples of how it works:
- Single and someone’s dependent on a federal return- $3,100
- Single and you are someone’s dependent on a federal return- $8,000
- Head of household- $11,200
- Married and filing jointly- $16,050
- Married and filing separately- $8,000
- Qualifying widow or widower- $16,050
There are some tax deductions and credits that you can take advantage of. New York allows the majority of the federal itemized deductions to be done on tax returns. There are also the college tuition and New York 529 plan that you are able to take advantage of. Your normal tax credits are available also in concerns to child care and there is New York’s own variation of the earned income credit.
This falls under the category of the things that you can write off when filing your taxes. There are certain purchases and things that you can report the price that was paid and reduce the income that is taxable. Depending on the way that you file your taxes determines what you are able to claim and not claim. Some things that are able to be used as tax incentives are:
- Babysitter Payments- The money that you pay to a babysitter for you to go to work, you can write off on your taxes.
- Business Expenses- You can claim the money you use to buy your work clothes or your supplies needed for work.
- Charitable gifts- When you donate things to goodwill or to a church you can claim the value of whatever it is that you donated.
- Mileage to and from work- Keep track of the miles you drive every day to and from work or the trips you need to take for work-related things.
New York property taxes are only on real estate. As far as your car and other things such as that, they do not have to pay property tax on those. The property taxes that they do receive go straight to the schools, police departments, fire departments, upkeep of roads, and any other services needed within the communities.
There are a few reasons to why you could be exempt from paying property taxes in New york. Those reasons can vary from being a veteran, senior citizen, or if you have a disability. This is made possible by a program called STAR and there are some rules that go along with qualifying for that. By looking into the details you can see if it something that you are able to qualify for.
When dealing with a decedent’s estate it can be stressful and trying to figure out what all you are supposed to do and are responsible for is just added worry. The taxes on the property is figured on the all together value of the property. That is if, the decedent has been a householder of the state. There are a few stipulations to the rules and ways that they figure out what the amounts are. Tax rates and the ability to be excused can increase, it changes from year to year.
- Values of $5,740,000 or less are excused for deaths that occurred between January 1, 2019-2020
- Values of $5,850,000 or less are excused for deaths that occurred between January 1,2020-2021
- Values of property being $10.1 Million pay 16% estate taxes
- Values less than $10.1 Million pay a on a scale between 3.06%- 15.2%
For many years, since January of 2005, the sales tax rates have been 4%. There items that are exempt from sales tax. Things such as clothes and shoes are completely excused from sales tax as long as it is below $110. Food, prescription medication, and non-prescription medication are items that New York does not charge sales tax on.
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New York Gates has been in business for many years. We have been adding a sense of safety to the city and providing maintenance to existing clients. We love working in all the surrounding cities of Brooklyn. Security of your business or home is something you never want to take for granted, we would love to help you make your property the safest it can be. Give us a call today to get started.
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