New York State has declared that “any retroactive changes made to the IRC after March 1, 2020, should not be taken into account when filing your 2019 New York State personal income tax return. “
This means that many of the favorable tax consequences on your federal return may not be allowable on your State return. As a former Certified Financial Planner (CFP) it also means you better seek knowledgeable help when preparing your 2019 taxes.
The federal government’s “Cares” act contains a number of mostly favorable provisions that will affect your 2019 income taxes for both individuals and businesses.
For example, the Act allows for refunds of prior taxes paid to generate positive cash flow, while it may also reduce the amount of taxes due on your 2019 income tax return.
Meanwhile the state says, “Due to changes in the Tax Law as part of the 2020-2021 New York State budget1, any amendments made to the IRC after March 1, 2020, will not apply to New York State or New York City personal income tax. “
“For example, the federal CARES Act3 made retroactive changes to the IRC on March 27, 2020. Although these changes may impact your 2019 federal income tax return, they should not be reflected on your 2019 New York State personal income tax return.”