State & Local Tax Impacts of COVID-19 for New York – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: May 05, 2021
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Information current as of April 7, 2021.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to New York

  • Prevents local governments from engaging in certain tax lien sales or foreclosures until May 1, 2021, and further extends the Senior Citizens’ Homeowner Exemption and the Disabled Homeowner Exemption to the 2021 assessment roll (at the same level) without requiring recertification.
    • S.B. 9114 (c. 381), Laws 2020, effective December 28, 2020.
  • New York issued guidance that the state would follow a feature of the CARES Act that excludes forgiven PPP loans from adjusted gross income. New York also clarified if the expenses related to the forgiven loan are deducted in computing federal adjusted gross income, these deductions are automatically excluded from New York adjusted gross income.
    • New York Department of Taxation and Finance, FAQs; January 14, 2021.
  • New York legislation provides that unemployment insurance benefits paid in connection with COVID-19 won’t be charged to employer accounts for experience rating purposes. This relief applies to unemployment insurance claims that are due to the closure of the employer, a reduction in the employer’s workforce due to COVID-19, or a governmental order to close the business due to COVID-19. The noncharging provision also applies to reimbursing employers (nonprofit and governmental employers) to the extent allowed under federal law. Prior to enactment, the New York Department of Labor took the position that the only COVID-19 unemployment insurance benefits that wouldn’t be charged to employer accounts were those reimbursed to the state’s trust fund by the U.S. Department of Labor, making it unclear whether regular benefits paid in connection with COVID-19 would be charged to employers’ accounts for experience rating purposes.
    • New York S.B. 1197, passed January 28, 2021; retroactively effective to March 12, 2020, and is repealed after December 31, 2021.
  • New York has extended the due date for personal income tax returns and related tax payments for the 2020 tax year from April 15, 2021, to May 17, 2021. The relief doesn’t apply to estimated tax payments for the 2021 tax year that are due on April 15, 2021.
    • New York Department of Taxation and Finance, Important Notice N-21-1; March 19, 2021.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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