senate Bill S3201A

Establishes the New York state foreign dependent children tax inclusion act

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 31 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Feb / 2014
    • PRINT NUMBER 3201A

Summary

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.

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Bill Details

Versions:
S3201
S3201A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง614 & 616, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7622

Sponsor 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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3201--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02218-03-4

S. 3201--A                          2

  (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.

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