Filing Status

• The amount of income tax you pay to the state of New York depends largely on your filing status. Filing status refers to marital status such as single, married or head of household. New York residents are required to file state income tax returns under the status used for federal income tax returns. The 2 basic state income tax return forms are the IT-150 and the IT-201. Form IT-150 is commonly referred to as the short form, while form IT-201 is routinely referenced as the long form.
  
  

Tax Brackets

• Like the Internal Revenue Service, the New York Department of Taxation and Finance taxes your taxable income in distinct brackets. Instead of charging one tax rate for all your income, your income is taxed in portions, with each portion assessed a particular tax rate. For example, a married couple from New York City filing a joint state income tax return is taxed 2.907 percent on the first $21,600 of their income; for income over $21,600 but under $45,000, the tax rate is 3.534; income ranging from $45,000 to $90,000 is taxed at 3.591 percent; and 3.648 percent is the tax rate for income between $90,000 and $500,000. The highest tax rate for the New York City residents in our example is 3.876 percent, and it applies to all income over $500,000.
  
  

Credits

• The state grants a wide variety of tax credits, which help reduce the amount of taxable income. Bear in mind that income tax does not necessarily apply to all the money you earn in a given year, but only the taxable income after you take credits, deductions and exemptions. For example, the state of New York grants a child and dependent care credit if you qualify for the same credit on your federal return. As of November 2010, the child care credit is worth between 20 and 110 percent of the federal child credit. The actual amount of your credit depends on your income. Other credits allow you to take a college tuition credit worth up to $400 for full-time state residents enrolled in an undergraduate program, and a deduction worth up to $10,000 for 2010.
  
  

Taxpayer Rights

• New York taxpayers are afforded rights and protections associated with their responsibilities and obligations as a taxpayer. According to the New York Department of Taxation and Finance, taxpayers are afforded the opportunity to be informed of their rights by representatives of the tax department. In addition, the state is prohibited from disclosing any personal information about you. The only exception to this prohibition is if the state has a legal obligation to divulge your information; should this occur, you are informed how the information was used. You also have the right to receive courteous and professional treatment from the tax department, and any complaints are directed to the following number 1-800-698-2945.