Individuals with self-employment income in the Metropolitan Commuter Transportation District
Recent amendments to the New York Tax Law have changed the payment and filing due dates of the Metropolitan Commuter Transportation Mobility Tax (MCTMT) for self-employed individuals. Individuals with net earnings from self-employment are required to make estimated MCTMT payments and to file annual MCTMT returns for the tax year. The new MCTMT payment and filing due dates now conform to the personal income tax payment and filing due dates. Effective for tax years beginning on or after January 1, 2015, estimated MCTMT payments are due on April 15, June 15, September 15, and January 15, and annual MCTMT returns must be filed by April 15. It should be noted that the payment and filing due dates for employers have not changed.
In addition, the new Tax Law amendments require the estimated MCTMT payments to be combined with payments of estimated personal income tax, and the reporting of MCTMT information on personal income tax returns. Accordingly, beginning with the April 15, 2015 payment, self-employed individuals must include estimated MCTMT payments with their personal income tax estimates. Furthermore, self-employed individuals must include annual MCTMT information on their 2015 personal income tax returns.
Partnerships engaging in business in the Metropolitan Commuter Transportation District
For tax years beginning on or after January 1, 2015, resident and part-year resident partners must make individual estimated MCTMT payments and report annual MCTMT information on their individual personal income tax returns.
For tax years beginning on or after January 1, 2015, nonresident partners must make individual estimated MCTMT payments unless the partnership has made estimated MCTMT payments on the partners' behalf. Nonresident partners must report annual MCTMT information on their individual personal income tax returns, except if the partners elect to participate in a personal income tax group return.
Partnerships doing business within the MCTD must make estimated MCTMT payments on behalf of nonresident individual partners of New York, except if:
• The estimated MCTMT required to be paid on the nonresident partner's behalf is $300 or less;
• The partnership is authorized to file a personal income tax group return and the partner has elected to be included in the group return; or
• The partner submits the appropriate exemption certificate to the partnership.
A partnership that has income from New York sources may be granted approval to file a personal income tax group return on behalf of its qualified electing nonresident partners. The group return is considered a group of individual personal income tax returns that meet the State and Yonkers return filing requirements. Accordingly, if a qualified partner elects to participate in the group return, the partner is not required to file an individual New York or Yonkers personal income tax return. The revised group return for nonresident partners will require partnerships to include annual MCTMT information on the group return.
If you would like to discuss any of the above matters, please do not hesitate to contact Alan Goldenberg at AGoldenberg@FriedmanLLP.com or your relationship partner at Friedman for assistance.