State Tax Changes for 2011

State 2011 Tax Year Changes

New York 2011 Tax Year Changes

Same-sex married couples. For 2011 and there after, same-sex married couples who are married as of the last day of the year must file New York income tax returns using a married filing status; such as married filing jointly or married filing separately. If you are married at anytime of the year, for tax filing you are considered married for the entire year.

Date of birth now required on NY income tax return. Individuals must now enter their birth date on their tax returns.

E-file requirement for individual taxpayers. Individuals who prepare their personal income tax returns with tax software are generally required to file electronically.

Yonkers resident income tax increased. The Yonkers resident income tax surcharge has been increased from 10% to 15% of the net New York state tax.

Lottery prizes may be applied against NY tax liabilities. The state may now apply a lottery prize of more than $600 against the winner’s outstanding New York tax liabilities.

Form IT-150 (short form) discontinued. This form has been discontinued, all full-year NY State residents must now use Form IT-201.

Connecticut 2011 Tax Year Changes

Property Tax Credit Reduced. The maximum property tax credit has been lowered from $500 to $300.

Tax Recapture for higher adjusted gross income taxpayers. If your Connecticut adjusted gross income (AGI) exceeds certain income thresholds; you are now required to add to your already computed CT tax an additional recapture tax. Connecticut AGI thresholds for adding the recapture tax are: Single or married filing separately $200,000 Married filing jointly $400,000 Head of household $320,000.

Phase-out of the 3% tax rate. The amount to which the 3% tax rate applies is reduced depending on your filing status and Connecticut AGI amount. This effectively raises your income tax if your state AGI is above: single $56,500 married filing separately $50,250 married filing jointly $100,500 head of household $78,500.

Lottery prizes applied to delinquent taxpayers. If a taxpayer has a lottery prize claim of $5,000 or more, Connecticut will deduct the amount of delinquent taxes owed.

Additional Residence Information required on tax return. Connecticut residents are now required to enter their resident city or town and zip code if it is different from their mailing address on Form CT-1040.

Angel Investor Tax Credit. Beginning October 27, 2011 the minimum investment required to qualify for the angel investor tax credit was reduced from $100,000 to $25,000.

New Jersey 2011 Tax Year Changes

Property Tax Deduction / Credit. To figure the correct amount of property taxes paid on their New Jersey principal residence, homeowners must know: whether they received a homestead benefit in 2011, the amount of the benefit and whether the benefit was paid as a credit on their 2011 property tax bill or in the form of a check. For Tenants, 18% of the rent paid during 2011 is considered property taxes paid.

Designated Contribution, lung cancer added. The New Jersey Lung Cancer Research Fund has been added to the list of organizations you can contribute to on the New Jersey tax return.

Form 1099-G no longer mailed. New Jersey is no longer mailing Form 1099-G to report the amount of a NJ State tax refund a taxpayer received. State income tax refunds can be taxable for Federal purposes if you file Schedule A itemized deductions. If you need this information you can view and print your 1099-G online at www.state.nj.us/treasury/taxation .

California 2011 Tax Year Changes

Tax Decrease. Starting with 2011 the CA State tax rate was decreased by 0.25%.

Dependent Exemption Increased. Starting with 2011 the dependent exemption credit increased from $99 to $315 per dependent.

Child and Dependent Care Credit Nonrefundable. Starting with 2011, the child and dependent care expense credit is nonrefundable.

Community Development Financial Institutions Investment Credit. This has been extended to 2012 through 2016.

Tsunami Waves 2011. For victims of the March 2011 tsunami in Del Norte, Mendocino and Santa Cruz Counties see California Publication 1034 “Disaster Loss How to Claim a State Tax Deduction“.