Changes to MCTMT for 2015
The amendment changes the due dates for self-employed individual making estimates and filing returns. The annual MCTMT returns must now be filed by the fifteenth day of the fourth month following the close of the tax year. The due date is now aligned with the filing of the 1040. Previously, the due date of the annual form was April 30 for a calendar year filer.
Quarterly estimates for the MCTMT are now also aligned with the Individual Income Tax due dates, specifically, April 15, June 15, September 15 and January 15. Previously, the MCTMT estimates were due April 30, July 31, October 31 and January 31. Estimates are now to be combined with personal income tax estimates and submitted using form IT-2105.
Because of this law change, resident partners and self-employed individuals must now include required estimates for the MCTMT with estimates for their personal income tax. Nonresident partners must combine the MCTMT estimates on form IT-2105 if the partnership is not withholding and remitting tax on behalf of its partners. Partnerships are exempt from withholding if any of the following circumstances apply:
- The estimated MCTMT required to be paid for the tax year by the partnership 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 on the group return.
- The partner submits the appropriate exemption certificate to the partnership.
As a result of this procedure change the group return, Form MTA-599, Application for Permission to Make Metropolitan Commuter Transportation Mobility Tax Group Estimated Tax Payments and File a Group Return, is now obsolete. In addition, all partnerships that previously filed Form MTA-599 and received permission to file a group MCTMT return has that permission revoked for tax years beginning on or after January 1, 2015.
Partnerships should notify partners that elected to participate in MCTMT group returns that estimated MCTMT payment and filing requirements have changed for tax years beginning on or after January 1, 2015.
A partnership that has any income derived from or connected with New York sources may be granted approval to file a personal income tax group return (“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 New York 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 State or Yonkers personal income tax return or nonresident earnings tax return for the tax year.
For tax years beginning on or after January 1, 2015, revised Form IT-203-GR, Group Returns for Nonresident Partners, requires partnerships to include annual MCTMT information on the group return.
The due date for employer filings has not been changed.
The MCTMT rates have also not changed. The rates for employers are shown below:
For individuals with net earnings from self-employed of over $50,000, the rate is unchanged at .34% on all earnings.
If you have any questions, please contact a member of our National Tax Services Group at [email protected].
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Chaim Kofinas, CPA 732-842-3113 [email protected] |
