Watch the fifth episode in this exclusive series featuring Tom Corrie, JD, LLM, Principal for powerful insights to help you navigate and maximize your individual tax position in New York, New Jersey, Connecticut, and Pennsylvania under the Tax Cuts & Jobs Act.
Read the Transcript
Under the new federal tax legislation, the impact on individuals in the New York State, New Jersey, Connecticut, and Pennsylvania is going to be quite significant. There are likely, in many of them, to be subject to a much higher federal tax bills than they’ve previously been subject to.
The new federal tax legislation is going to impact individuals that itemize their deductions because of the limitations that the new federal tax law has on the ability to deduct state and local taxes on the individual level. It doesn’t have as much of an impact on businesses. As a matter of fact, it’s somewhat favorable to businesses.
The new legislation puts a limitation of $10,000 per year on the amount of the state and local taxes that can be itemized and deducted. The proposed changes, or actual implemented changes, are going to result in an additional almost $15 billion worth of taxes being paid by New York State residents, and then you got the situation where in Connecticut, those folks are losing $10 billion worth of deductions. The impact in the metropolitan area particularly is going to be quite serious.
The best thing that folks can do is pick up the phone and call their Friedman tax advisor because we monitor all the changes in these state and local tax laws that may have a very positive impact on the amount of federal and/or state and local taxes that they are going to be imposed to under the new federal tax legislation.
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