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It turns out there is a side effect of having big-time taxes in New York: big-time complexity.
If you felt like it took you a long time to get your taxes done, or that you had to pay your tax preparer a lot, you’re not wrong. Americans spent 1.9 billion hours doing their taxes last year, for the average taxpayer using a basic form, 13 hours was spent.
New York’s tax system makes those burdens worse by being one of the most complex state systems in the country.
The Progressive Policy Institute (PPI) found that based on New York’s over 400 different tax carve-outs, the code is the 3rd most complex.
There are plenty of legitimate reasons for a specific deduction here or there, but when your state has 300 more special tax rules than California, you have a problem.
This complexity problem drives up costs. On average, New Yorkers are paying the third highest tax preparation fee at $290. The national average is $273.
That’s even more money coming out of your pocket because you live and pay taxes in New York.
There’s also another pitfall for New York taxpayers: the state is the 7th worst when it comes to IRS audits. It turns out dealing with the federal code is tougher in the Empire State as well.
Ouch. Just when you thought it was impossible for New York’s worst-in-the-nation tax burden to get worse, they found a way.
This complexity means you lose more time, and businesses have higher sunk costs for operating here. A more complex system makes it tougher for every business to make it, whether a tech start-up or mom-and-pop shop.
You’ve taken on the extra headaches to pay taxes in New York, take just a minute and join Reclaim to make your taxes a little less painful.
Sign up to reclaim New York!