Our NYC CPA office is committed to helping self-employed business owners and freelancers keep up to date on the latest tax laws. Recently, New York introduced a personal income tax subtraction modification for contributions made to a first home savings account. The subtraction is limited to $5,000 for an individual or head of household and $10,000 for married couples filing jointly. Only the account owner can take the subtraction.

A separate subtraction is allowed for distributions from a first home savings account, if it can be included in federal gross income. However, certain excess distributions must be added to federal adjusted gross income.

Our lower Manhattan Certified Public Accountants will continue to monitor this legislation and provide updates as they are available.If you have questions about this or other tax laws in New York State or the new tax reform laws, please contact us.