Real Estate

3 Tax Benefits for New York Veterans

Current and former members of the military are eligible for certain tax exemptions.

“These exemptions and credits are one small way we can show our gratitude to the brave and dedicated individuals who currently serve or have served in our military,” said Acting Commissioner of Taxation and Finance Nonie Manion in a 2017 press release.

Photo by Benjamin Faust on Unsplash

Photo by Benjamin Faust on Unsplash

In today’s post, we’ll examine a handful of the exemptions available for New York veterans.

Property Tax 

As many as half a million New York veterans benefit from property tax exemptions, many of which are offered by local governments.

Depending on the circumstance, the property tax burden of a wartime veteran could be up to 15% or even as high as 25% if the veteran serves in a combat zone.  Cold War veterans (between 1945 and 1991) could see up to 15% in exemptions.

If the veteran was disabled in the line of duty, they could see up to 50% off in exemptions.

How do these property tax exemptions work?

In September 2017, Gov. Cuomo signed a bill that allowed the 679 school districts the option to allow exemptions for Cold War veterans for the entirety of the time the veteran owns the property. Prior, it was 10 years.

To find out which of these exemptions applies to you, you’ll need to contact your local assessor’s office. Visit NYS’s Municipal Profiles website to get the contact information you need.

Military Pay  

If your permanent home was in NYS before you entered the military, you don’t have to pay income tax on your active-duty pay. But it isn’t quite that simple.

You have to meet ALL three of the following conditions:

  • Didn’t have a permanent home in NY

  • Maintained a permanent abode outside of NY (this excludes military quarters like barracks, BOQ, etc.)

  • Spent less than 30 days in New York during the year

Basically, you need have not lived in New York almost at all for the entirety of the year to be eligible for this perk. You also had to be living somewhere off-base/ship to not owe income taxes.

Hire a Veteran Credit 

There are two types of hire a veteran credit. They are:

  • Corporations subject to franchise tax

  • Individuals, estates and trusts under personal income tax laws

This credit applies if you or your business:

  • Hires a qualified veteran before January 1, 2020

  • Employees the qualified veteran for 35 hours

If the veteran is disabled, the credit is 15% of the total wages paid during the first full year of employment. That amount can’t exceed $15,000 per veteran.

If the veteran isn’t disabled, the credit is10%  of the total wages paid during the first full year of employment. For nondisabled veterans, the credit is capped at $5,000.

These are just a handful of the tax benefits, credits, and exemptions that veterans can take advantage of. Reach out to one of our tax professionals and we’ll ensure you’re getting the most tax benefits from your service.

 

Misplaced decimal means big property tax bills

By Bankrate

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

taxes-blog-Misplaced-decimal-means-big-property-tax-bill-shutterstock-mst

Remember that tax tip about double checking your math before submitting your return? It applies to tax agencies, too.

A misplaced decimal by Jupiter, Florida, tax officials prompted a panic by some homeowners who recently received larger-than-expected property tax bills.

One dot means 10 times tax trouble

The annual tax bills were 10 times greater than they should have been. Instead of a 0.233 millage rate used to calculate a portion of the local property taxes, the town used 2.33.

Fortunately for the seaside community’s property owners, Jupiter officials realized their error — after hearing from angry residents — and have corrected it.

“When I was entering the Town’s Debt portion of the millage rate for the preliminary tax notice I inadvertently typed 2.330 instead of .2330,” Jupiter Finance Director Mike Villella told The Palm Beach Post.

And there’s an even brighter silver lining. Jupiter officials are considering a slight decrease to the overall property tax rate.

I suspect the upcoming public hearing on the proposed property tax rate will be quite well attended.

Review your tax bills

All of us property owners can learn from the Jupiter math error. Everyone makes mistakes, so we need to pay close attention to those property tax assessments we receive, as well as our eventual actual tax bill.

When you think your property tax bill is too big, you have options to correct it. Start with these 3 steps to lower your property taxes:

1. Review your property assessment amount.
2. Apply for homestead and any other exemption amounts for which you qualify.
3. Freeze your assessment if you are part of an eligible property group, such as a member of the military or a senior citizen.

You can get an idea of what type of exemptions your tax officials offer by checking your state’s property tax section at Bankrate’s state tax pages.

Appeal your assessment

If after receiving all the exemptions you deserve you still find your property tax bill is larger than you believe it should be, you can appeal it to the taxing officials.

It takes some work as homeowners who’ve gone through the appeals process can attest, but when you get a correct, lower bill, it’s worth it.

Do you regularly check your real estate tax assessments and bills, or do you just pay what the tax collector says you owe? Have you ever appealed a property tax bill?

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

Tax and Finance Tips for Buying a Home in Westchester County

Buying a home is a rewarding milestone that also comes with a great deal of tax and finance-related implications.

tips for buying a home in westchester county from westchester accountant paul herman

Get to know these helpful hints before buying a home in Westchester County!

As a homeowner in Westchester County, Westchester accountant and personal finance expert, Paul Herman knows first hand how to help ease the stress on your home buying experience in Westchester, and of course, save money in the process! Get to know these handy tips in Paul’s guest blog with Westchester NY real estate agency Prudential Centennial Realty here.

Photo Credit: electrosawhq.com

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.