3 ms·

New York state government website seems to disagree https://www.tax.ny.gov/forms/current-forms/it/it201i.htm#nys-tax-rate-schedule https://www.tax.ny.gov/forms/

• rrdharan 3y ago
  https://www.bogleheads.org/forum/viewtopic.php?t=247046 https://www.bogleheads.org/forum/viewtopic.php?t=247046 explains the situation (posted below). See also: https://www.businessinsider.com/personal-finance/new-york-state-income-tax-rates https://www.businessinsider.com/personal-finance/new-york-st... “However, New York also has a provision called tax-benefit recapture, which essentially turns its progressive tax into a flat tax for high earners, says Eric Bronnenkant, head of tax at Betterment and a certified public accountant.”
  • brewdad 3y ago
    If you are at all at risk of earning $25 million in a given year, throw a few bucks at a tax advisor to ensure you avoid this pitfall. Everyone else, carry on. Nothing to see here.
    • rrdharan 3y ago
      I see you made it to the fourth bullet point in the first paragraph of one of the two links. It actually matters - or can matter, anyway - if you have any event pushing your income above $1M (if filing single) because of the change in deduction treatments.
  • naniwaduni 3y ago
    The actual effect of recapture schemes is to increase marginal tax rates on mid-high incomes while leaving the highest brackets mostly untouched, and then lie about it.