NYS Decoupled from New Federal Laws

As part of the budget legislation that was effective on April 1, 2020, New York State has decoupled from certain amendments made to the federal Internal Revenue Code.  For taxable years beginning before January 1, 2022, any amendments made to the federal Internal Revenue Code after March 1, 2020 do not apply to the New York personal income tax.  As a result, this new rule generally affects the 2020 and 2021 tax years.

Recent federal changes that occurred after March 1, 2020 have been discussed in many of our earlier posts, including extensive discussions on March 31, 2020, and April 23, 2020.

As a result of this change, beginning with the 2020 New York State personal income tax return, there will be numerous new adjustments that will be needed to adjust federal adjusted gross income to New York adjusted gross income.

Between now and the end of the year, practitioners should consider these changes when projecting the 2020 New York income tax liability for clients.