NY Senate GOP pushing for income tax break on unemployment benefits

NY Senate GOP pushing for income tax break on unemployment benefits Photo: File photo, News10NBC.

Created: March 31, 2021 05:00 PM

ROCHESTER, N.Y. (WHEC) — State Senate Republicans are pushing for New York State to give residents a state income tax break on the first $10,200 of unemployment benefits from 2020 as the federal government has.

The latest stimulus bill gave Americans the tax break on their federal income taxes. Click here for information on how to claim the tax break if you filed before the stimulus bill was passed.

Sen. Jim Tedisco (R, 49) Wednesday offered an amendment on the Senate Floor, which was supported by Senate Republican Leader Rob Ortt (R, 62) and the entire Senate Republican Conference, according to a GOP press release.

The release cites Department of Labor statistics showing 4.6 million New Yorkers received unemployment since the start of the COVID-19 pandemic.

It also says every member of the Senate Democratic conference voted against the proposal.

Freeman Klopott, the press officer for the New York State Division of the Budget provided the following statement to News10NBC Wednesday:

“Unemployment benefits have been subject to state taxes for 50 years. The Legislature decoupled the state from federal tax law changes and, therefore, under current law this income continues to be taxed. We are reviewing this with the Legislature as we work to enact a budget that delivers support for New Yorkers and closes a deficit caused entirely by the pandemic’s decimation of state revenue.”

The state budget is due on Thursday at midnight.

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