
Tax Season Is Underway In New York State
New York State holds the unfortunate distinction of being one of the highest-taxed states in America. Residents of the Empire State pay more in taxes and fees than most people in the United States, and we're only slightly behind one other state. Looking at the 50 states and the District of Columbia, Buffalo ranks 50 out of 51 when looking at the effective tax rate, only second to Illinois.
Generally speaking, this is not a good thing that the average New Yorker pays nearly 15% of their income to the state's treasury. However, this time of year might be one of the only times New Yorkers might feel like looking on the bright side.
Governor of the Empire State, Kathy Hochul, recently announced that the New York State Direct File program is now available for residents and that the New York State Department of Taxation and Finance is not accepting tax returns.
READ MORE: New Yorkers Pay More For This Than Just About Every Other State
In 2023, the most recent year available, New York State took in more than $108 billion in tax and fee revenue, with more than $58 billion coming from income tax withholdings. The state isn't necessarily entitled to keep all those funds and a significant chunk of cash ends up being refunded to state residents.
When that happens, people receive a tax refund after submitting a return. The New York State Direct File program should make it easier for a significant chunk of New Yorkers to get some of the money back they paid to the Empire State. This program allows you to file your tax return directly with the state or IRS and skip paying for a third-party tax preparation service or software.
To find out if you're eligible to file your return yourself, directly and for free, you can check the state website right here.
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Gallery Credit: Dave Wheeler