600,000 Long Islanders will also Benefit from Increased STAR Program Rebates
With the New Year comes a new tax season and with it the latest tax breaks and rebates. As such, Sanders Thaler Viola & Katz, LLP is informing all New York taxpayers of recent legislation that will allow 56 Federal tax breaks to be extended through 2016 and on the upcoming state tax rebates. The pending legislation will benefit both large and small businesses, commuters who use public transportation, teachers who pay out-of-pocket for their classroom and individuals using income taxes to pay forgiven debt on reduced mortgages. Updates to the STAR rebate program will also benefit all New Yorkers, who will receive a sum 2.5 percent greater than last year’s rebate.
This latest Senate bill extends will save taxpayers $95 billion, and will benefit one in six Americans, while further adding to the American deficit. Technology businesses will be one of the biggest beneficiaries of the breaks, as there are tax credits for research and development. There is also an exemption that allows financial companies such as banks and investment firms to avoid high taxes on foreign profits and corporations will be able to write off capital investments at a faster rate.
Homeowners who are enrolled in the New York State’s School Tax Relief Program (STAR) will receive a property tax rebate checks of varying amounts if their local government and school district stayed under the property tax cap unfortunately. To qualify, the property must be the homeowner’s primary residence and the total household income must be $500,000 or less. Though the average increase will be around 2.5 percent, residents in 22 villages will receive smaller amounts due to their town’s overspending.
Other exceptions to reimbursement are improvements to property that increase its value, changes in a property’s exemption status or a jurisdiction assessment to the extent the increase in the property’s assessed value exceeds the average change in assessed value.
“The passing of this legislation and the property tax-freeze rebate will open up several opportunities to New Yorkers who felt the strain this year,” says Scott Sanders, CPA, PFS, CGMA, CFP®, CFS, Managing Partner, Sanders Thaler Viola & Katz, LLP. “Smart fiscal discipline can be the difference between receiving a check this time next year or not. Personal finances should be trusted to professionals who know the ins and outs of the system and can conduct their audits efficiently.”
For more information, call (516) 938-5219.