New York State Acting Commissioner of Taxation and Finance Barbara G. Billet today advised taxpayers that early planning for the upcoming tax season can save filers time, effort and energy - and, perhaps, even a few dollars.

“With the holiday season behind us, taxpayers across the nation are preparing to file their annual personal income tax returns,” Acting Commissioner Billet said. “A little advance planning can reduce the time taxpayers need to file their returns, especially if they e-file, and avoid errors that may reduce their tax refunds. Taxpayers who prepare in advance have a better chance of maximizing their tax savings.”

Besides organizing records, receipts and other expenses, taxpayers should check copies of their 2005 tax returns against what they’ve earned in 2006 and anticipate deducting this year. Taxpayers with concerns should consult the Tax Department’s website, www.nystax.gov, or contact the department’s customer service representatives at 1-800-CALL-TAX (1-800-225-5829) for more information.

On the website, taxpayers can access information on how to obtain or download tax forms, determine whether they qualify for free online New York State tax preparation and e-filing, how to obtain Form W-2 (an individual’s wage and tax statement), or who to contact regarding an outstanding tax liability. Tax filers can also consult the department’s catalogue of Frequently Asked Questions (FAQs), which provides answers to questions regarding personal income tax, estate tax, gift and prize winnings, sales and use tax, child support enforcement, technical assistance and help with other tax-related matters.

There’s also information available online or through the Call Center about the state’s STAR school tax relief program for homeowners, tax help for individuals serving in and in support of the Iraq combat zone, how to find up-to-date changes to the state’s individual and corporate tax forms, and how to check on the status of your refund online or by phone.

Taxpayers looking for detailed information about tuition tax credits or tax credits for homeowners or renters should log onto the department’s website and click on Publications and Technical Bulletins. There they’ll also get help on Earned Income Tax Credit qualifications, tax issues related to hiring domestic help, questions and answers on New York State’s Farmer’s School Tax Credit, and tax information for New York State Nonresident and Part-Year Resident tax filers. There are dozens of easy-to-read publications and technical bulletins that cover most concerns of both individual and business taxpayers.

Taxpayers should also be aware that they may benefit from changes made this year in the State Tax Law. Among those changes are:

• Certain rates within the New York State and New York City tax rate schedules have been reduced.
• The standard deduction has increased: Effective January 1, 2006, the standard deduction for married filing joint return and qualifying widow(er) increased from $14,600 to $15,000, and the standard deduction for married filing separate return increased from $6,500 to $7,500.
• New Empire State Child Credit: A new refundable credit is available to full-year New York State residents. The credit is equal to 33 percent of the federal child tax credits (child tax credit and additional child tax credit) for each child who qualifies for the federal child tax credit and is at least four years old; or the sum of $100 for each child who qualifies for the federal child tax credit and is at least four years old, whichever amount is greater.
• Form IT-370, Application for Automatic Six-Month Extension of Time to File for Individuals, now automatically extends the due date of your return for six months instead of four.
• New home heating system credit: A new credit is available for costs incurred between July 1, 2006 and July 1, 2007 that are directly associated with the replacement of an existing home heating system that qualifies for, and is labeled with, an Energy Star label. For additional information, see Form IT-240, Claim for Home Heating System Credit.
• New Noncustodial Parent New York State Earned Income Credit: This credit may be available to a full-year resident individual who is 18 or older, is a parent of a minor child (or children) who does not reside with the individual, has an order requiring the individual to make child support payments that are payable through a support collection unit, and has paid child support during the tax year for every order that requires the individual to make support payments. For additional information, see Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit.

“Resist the temptation to put off filing your taxes until the last minute,” Acting Commissioner Billet said. “You can cut tax preparation time if you develop a system for organizing records and receipts, and by logging onto our website for instructions and more information. Check to see if you qualify for free e-filing. By starting now, taxpayers can avoid the stress and frustration of the mid-April tax rush.”

The department also encourages taxpayers to use e-file in conjunction with direct deposit of any refund due in place of applying for the refund anticipation loans often offered by tax preparers. Refund anticipation loans carry hefty fees and interest that can eat a large portion of any refund a taxpayer has coming. By filing early, using e-file and opting for direct deposit, taxpayers can receive their refund in as little as two weeks and without losing a significant portion of their refund in the process.