Discussion:NYS- Metro Commuter Transportation Tax

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Discussion Forum Index --> Basic Tax Questions --> NYS- Metro Commuter Transportation Tax


Discussion Forum Index --> Tax Questions --> NYS- Metro Commuter Transportation Tax

Walnut123 (talk|edits) said:

28 March 2010
I have a self employed client (NYS) who is subject to this new tax. Where (If anywhere) can I deduct the estimated taxes he paid during 2009?

Can I deduct it with other state and local taxes on the schedule A? Thanks

Uncle Sam (talk|edits) said:

28 March 2010
It's a business deduction, under "Taxes" on Schedule C.

You need to properly code the information, because it needs to be added back as an increase adjustment to the New York State tax return, as well as prepare Form MT-6, and take credit for the estimates paid.

Walnut123 (talk|edits) said:

28 March 2010
Thank you Uncle Sam

I see that the commuter tax should be listed as a A-24 addition on line 23 of the NYS tax return. And I see that there are advantages for listing it as a deduction on the schedule C. But should it really go under the schedule C and not the schedule A?

Uncle Sam (talk|edits) said:

28 March 2010
Yes it should. It's a tax based on the net earnings from self-employment, just like a payroll tax paid for an employee. It's not a personal tax like real property taxes.

CPAJEFFG (talk|edits) said:

7 October 2010
Okay what when the MCTMT tax results from SE income flowing from K-1's, not Schedule C? By the logic above it should be taken on Schedule E above the line, which is good (vs. Sch A) especially if the taxpayer is in the AMT. In my prep program that would be on a "Statment SBE" (Statement of Business Expenses) which is a pseudo-2106 it uses for business expenses other than employee expenses. Bit of a PIA for the usually bupkis amounts involved and I always think those non-K-1 expenses deducted on Schedule E might be a red flag. And as noted above, wherever its deducted it must be added back on the NYS return. This %&*$# tax is more trouble than it is worth on so many levels - separate forms, separate estimates, different due dates, separate extensions, business deduction, state addition...

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