Bill S3201A-2013

Establishes the New York state foreign dependent children tax inclusion act

Establishes the New York state foreign dependent children tax inclusion act authorizing a tax deduction for support provided to children outside of the United States; defines "dependent children"; provides an exemption of $1,000 for each foreign dependent child.

Details

Actions

  • Feb 10, 2014: PRINT NUMBER 3201A
  • Feb 10, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 31, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S3201A

TITLE OF BILL: An act to amend the tax law, in relation to establishing the New York state foreign dependent children tax inclusion act

PURPOSE OR GENERAL IDEA OF BILL: The purpose of the bill is to allow a resident taxpayer to receive a state income tax standard deduction and tax exemption for the financial support provided to a dependent child or children residing outside of the United States.

SUMMARY OF SPECIFIC PROVISIONS: Subsection (c) of section 614 of the tax law is amended by adding subdivision (2) to allow:

(2) (A) For taxable years after 2015, an individual providing financial support to a dependent child or children residing outside of the United States to be considered as a head of household for purposes of this section when the individual provides certain proof as specified in this section.

(B) Provides the definition of "support" for the purposes of this section.

(C) Provides the definition of "dependent child" for the purposes of this section.

(D) Provides the penalty imposed for any taxpayer who submits a false or fraudulent document.

(3) Section 616 of the tax law is amended by adding a new subsection to allow, for taxable years after 2015, a resident taxpayer to receive a New York tax exemption for the financial support provided to a dependent child or children residing outside of the United States.

Section 4: Establishes the effective date and gives the commissioner of taxation and finance the authorization to promulgate rules and regulation necessary to implement this act.

JUSTIFICATION: Currently, under the New York State Tax Law, resident taxpayers are eligible for a standard deduction and tax exemption only when their dependent children are legal residents or citizens of the United States and currently live with them for more than half of the year. Many resident taxpayers provide financial support to their children who reside outside of the United States, which is a high expense for many New Yorkers especially in these economic times. These residents are taxed based on their total annual income without taking into consideration the significant support they provide to their families in other countries. This legislation does not provide a tax credit but a small standard deduction and tax exemption that will help them save some money and receive the same benefit ether taxpayers receive just because their children reside in the united states and live with them. This bill will not allow these taxpayers to receive an Earned Income Tax Credit (EITC) for these dependent children.

PRIOR LEGISLATIVE HISTORY: 2011-12: S.7622/10079A - Investigations & Gov't Ups

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3201--A 2013-2014 Regular Sessions IN SENATE January 31, 2013 ___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to establishing the New York state foreign dependent children tax inclusion act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "New York state foreign dependent children tax inclusion act". S 2. Subsection (c) of section 614 of the tax law, as amended by chap- ter 170 of the laws of 1994, is amended to read as follows: (c) Head of household. (1) For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of an individual who is a head of household shall be ten thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be ten thousand dollars; for taxable years beginning in nineteen hundred ninety-five, such standard deduction shall be eight thousand one hundred fifty dollars; and for taxable years beginning after nineteen hundred eighty-nine and before nineteen hundred ninety- five, such standard deduction shall be seven thousand dollars. (2) (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, AN INDIVIDUAL PROVIDING SUPPORT TO A DEPENDENT CHILD OR CHILDREN RESIDING OUTSIDE OF THE UNITED STATES SHALL BE DEEMED HEAD OF HOUSEHOLD FOR PURPOSES OF THIS SUBSECTION WHERE THE INDIVIDUAL PROVIDES PROOF OF: (I) THE LEGAL RELATIONSHIP BETWEEN THE INDIVIDUAL AND HIS OR HER DEPENDENT CHILD OR CHILDREN; AND (II) THE AMOUNT OF MONEY WHICH THE DEPENDENT CHILD OR CHILDREN RECEIVED FROM THE INDIVIDUAL.
(B) SUPPORT PROVIDED TO CHILDREN OUTSIDE OF THE UNITED STATES MEANS MONEY OR OTHER FINANCIAL SUPPORT WHICH IS SENT OR TRANSFERRED OUTSIDE THE UNITED STATES TO A DEPENDENT CHILD OF THE INDIVIDUAL. (C) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "DEPENDENT CHILD" SHALL MEAN ANY CHILD OF THE INDIVIDUAL WHO IS AGE EIGHTEEN OR YOUNGER. (D) ANY TAXPAYER WHO SUBMITS A FALSE OR FRAUDULENT DOCUMENT TO DEPART- MENT REGARDING THE PROOF REQUIRED PURSUANT TO THIS SUBSECTION SHALL BE SUBJECT TO THE PENALTY IMPOSED PURSUANT TO SUBSECTION (CC) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS ARTICLE. S 3. Section 616 of the tax law is amended by adding a new subsection (c) to read as follows: (C) FOREIGN DEPENDENT CHILDREN. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, A RESIDENT INDIVIDUAL SHALL BE ALLOWED A NEW YORK EXEMPTION OF ONE THOUSAND DOLLARS FOR EACH DEPENDENT CHILD RESIDING OUTSIDE OF THE UNITED STATES. SUCH INDIVIDUAL SHALL PROVIDE PROOF OF THE LEGAL RELATIONSHIP BETWEEN THE INDIVIDUAL AND HIS OR HER DEPENDENT CHILD OR CHILDREN AND THE AMOUNT OF MONEY THE INDIVIDUAL PROVIDES TO THE DEPENDENT CHILD OR CHILDREN. ANY TAXPAYER WHO SUBMITS A FALSE OR FRAU- DULENT DOCUMENT TO DEPARTMENT REGARDING THE PROOF REQUIRED PURSUANT TO THIS SUBSECTION SHALL BE SUBJECT TO THE PENALTY IMPOSED PURSUANT TO SUBSECTION (CC) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS ARTICLE. FOR PURPOSES OF THIS SUBSECTION, THE TERM "DEPENDENT CHILD" SHALL MEAN ANY CHILD OF THE RESIDENT INDIVIDUAL WHO IS AGE EIGHTEEN OR YOUNGER WHO RESIDES OUTSIDE OF THE UNITED STATES. S 4. This act shall take effect immediately. The commissioner of taxation and finance is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus