Certain tax laws might be coming to an end in the state of New York this year. Tax policies are changing in big ways in New York and the surrounding three states. These changes could have big effects on businesses and people who live there. These changes could have an effect on the local economy and the cost of living, as well as on taxes on income and businesses and on real estate rules.
The Tax Cuts and Jobs Act set to expire this year
This year, the Tax Cuts and Jobs Act will no longer be in effect. It is one of the most important pieces of legislation that will be ending. The Act was first put into effect in 2018. Now, Congress has to decide whether to let it expire, keep it in effect for another year, or make changes to it. This decision will have big effects on taxpayers, especially those who are still doing their taxes.
The act lowered tax rates, raised the standard deduction and the child tax credit, and lowered the estate tax exemptions. It is often called a “major tax reform.” But it also limited the federal deduction for state and local taxes (SALT) to $10,000.
This mostly affected people in New York and other states with high taxes. Many people and families will have to change their tax plans based on how lawmakers decide to handle the future of these provisions.
Jim Schnell, a tax partner with MMB + Co LLP, said, “That was a big change for many middle-class and upper-class tax filers in 2017 and 2018.” In that area, both your property taxes and your New York state income taxes were capped at $10,000 per year. A lot of people saw that as a big change.
As Trump’s administration gets ready to take over, many people think that the Act will not be extended because Trump has promised to get rid of the cap.
That being said, Congress makes the final decision. The Tax Policy Center and the Tax Foundation say that getting rid of the cap would mostly help people with the most money.
New 2025 legislative changes for the tri-state area
While people in New York and across the country wait to see what happens with the Tax Cuts and Jobs Act, this year there are more immediate changes happening in the tri-state area that will directly affect these people.
Beginning January 1, New York employers will have to give pregnant workers at least 20 hours of paid time off to go to medical appointments like sonograms.
In Connecticut, almost all private companies with 25 or more workers will have to give their workers 40 hours of sick leave. The old rule only applied to companies with 50 or more employees. This change makes it bigger. In the meantime, New Jersey’s gas tax will go up by 2.6 cents per gallon, making the total tax rate for drivers about 45 cents per gallon.
Exciting news for New York families for 2025
Kathy Hochul, the governor of New York, recently said that workers will get more workers’ compensation and paid family leave in 2025, and businesses will continue to save money.
The minimum weekly benefit for workers’ compensation and the maximum weekly benefit for Paid Family Leave will both go up on January 1, 2025. At the same time, the rate at which employers are charged for workers’ compensation will go down.
“Hardworking New Yorkers should not have to worry about how they will pay their rent or buy food when they need to take time off to care for a sick family member or newborn or get hurt on the job.” Governor Hochul also said that business owners who have to pay their own bills and take care of their families need affordable solutions. “I am glad that New York State is looking for ways to help workers and employers get more money so that everyone can do well.”
