Statutes of Limitations to Claim a New York Income Tax Refund

The state of New York levies an income tax on its residents and anyone who has earned income in the state. Most people pay income tax as a deduction from their paychecks. If you have too much New York income tax withheld from your paycheck, you may get a refund of the amount you overpaid. To get the refund, however, you must file a New York income tax return within the required time.

The deadline for filing your New York income tax return generally is April 15 of the year following the tax year. You may request one six-month extension of the deadline, but you must submit the required form before the deadline. New York automatically grants the extension to anyone who applies, but you still must pay your estimated taxes before the deadline. Failure to pay on time will result in fines, interest charges and penalties.

If you overpaid your taxes and are eligible for a refund, you must file a return to get the refund. You may still get a refund even if you don’t file your return before the deadline, but you must file within the statute of limitations, which, in New York, is three years from the original due date for the return or two years from the date the tax was actually paid. The latter of the two statutes of limitations applies.

If the state of New York fails to timely issue your return, it must pay interest on the refund. Generally, the state has 45 days from the due date of your return to issue your refund. Interest does not accrue, however, if you do not file your return before the appropriate deadline or if you file for an extension.

While getting a refund at tax time may seem like a good idea, it costs you money because you are giving the state an interest-free loan. You can maximize your income by having the appropriate amount withheld from each paycheck to avoid having a refund when you file your return. To adjust your New York income tax withholding, fill out Form IT-2104 Employee’s Withholding Allowance Certificate and submit it to your employer. Your employer can help you determine how much money to have withheld from each paycheck.