New York State Tax Credits

There are many state tax credits available in New York, many that you may have never heard about.  We thought we would highlight just a few that you may not be aware of:

Clean Heating Fuel Credit – You may be entitled to this refundable credit if you or your business purchased bioheating fuel to be used for space heating or hot water production for residential purposes within NYS.  The credit is equal to one cent for each percent of biodiesel per gallon of bioheating fuel purchased before 1/1/2020.

Volunteer Firefighters’ and Ambulance Workers’ Credit – You may be entitled to claim this credit if you were an active volunteer firefighter or volunteer ambulance worker for all of the tax year and you were a resident of NYS for all of the tax year.  The credit amount is $200.

Automated External Defibrillator Credit – You may be entitled to this nonrefundable credit if you or your business purchased an automated external defibrillator(s) during the tax year.  The credit is equal to the purchase cost of the unit, or $500, whichever is less. 

Nursing Home Assessment Credit – You may be entitled to this refundable credit if you paid the nursing home assessment imposed on a NYS nursing home.  You can find the amount of this assessment on the billing statement from the nursing home.  The assessment amount is not the amount of expenses paid.  The credit is equal to the 6% base-rate portion of the assessment that you directly paid during the year. 

If you think you may be entitled to any of these credits, contact our office immediately for a free consultation at 516-409-1120. 

Sandra G. Johnson, CPA, EA, CFE

Retirement or College Savings

Retirement or College Savings

We hear from so many clients that they have reduced their retirement savings so that they can put something away for their children’s college fund.  It is understandable that parents have a feeling of obligation to provide for their child’s education.  In a perfect world, you would max out your retirement contributions and still be able to save for college.  Of course, if you are living paycheck to paycheck – this is not possible.

We view retirement as the priority when you must choose between the two, and this is why.  There is no financing for retirement.  Unless you have a pension to look forward to, it will be up to you to make up the gap that Social Security does not fill.  That is why saving for your retirement is imperative.  You may plan to work part-time during retirement, but that plan may change as you age and desire the freedom to do other things.  The goal is to build up enough of a nest egg, that you do not exhaust it before you’re done spending!

When it comes to college, however, there are options.  Perhaps the biggest way to manage college spending is to limit choices to those that are financially achievable.  Once the field is narrowed, you can look to financial aid packages, scholarships (from schools and other organizations), work-study programs, grants and loans to make up the difference. 

One thing is sure – when it comes to retirement or college savings – start early to maximize the magic of compounding!

 

Honorine M. Campisi, CPA