Conformity

New York’s personal income tax law, like that of other states, conforms with the federal system of income taxation.[i] The reason typically given for such conformity is to simplify tax return preparation, improve compliance and enforcement, and aid in the interpretation of tax law provisions.[ii]

The most significant example of New York’s conformity to the Code[iii] is found in the state’s computation of a resident taxpayer’s state income tax liability, which begins with the taxpayer’s federal adjusted gross income, and is then modified by certain additions and subtractions which reflect New York’s unique tax treatment of certain items.[iv]

A corollary to the conformity principle requires that any changes to the taxpayer’s federal adjusted gross income[v] be accounted for in re-determining the taxpayer’s New York income tax liability.