When are nyc ubt estimates due?

WHO IS SUBJECT TO THE TAX?

Any individual, fiduciary or unincorporated entity, including a partnership, proprietorship or trust, conducting, engaged in or liquidating any trade, business, profession or occupation.

A partnership includes, but is not restricted to, a syndicated group, joint venture or other unincorporated organization.

HOW IS THE TAX COMPUTED?

The tax is imposed at the rate of 5% of the taxable net income. The tax shall not be less than $250.

Only an unincorporated business with gross income in excess of $50,000 and adjusted net income in excess of $15,000 shall be subject to the Unincorporated Business Tax. These threshold amounts are subject to proration for taxpayers conducting, engaged in or liquidating any trade, business, profession or occupation for less than one year or becoming incorporated during the year.

Gross income is that gross income as determined for federal income tax purposes. In determining gross income, the following federal tax forms shall be used:

Form 1040, Schedules C, E and F; Form 1065 (Partnership); Form 1041 (Fiduciaries).

The following items shall be excluded from gross income:

Adjusted net income is the excess of net income over the following exemptions from net income:

Net income is the excess of gross income over deductions directly connected with or incurred in the conduct of the unincorporated business and allowable for federal income tax purposes.

The following deductions shall not be allowed:

WHAT IS TAXABLE NET INCOME?

Taxable net income is that amount derived by:

WHAT CREDITS ARE ALLOWED?

Once the amount of tax liability is determined, tax credits are allowed for amounts expensed on: waste treatment facilities; air pollution abatement facilities; cooperative work education programs; machine tool and metal trades apprenticeship programs; and manufacturing facilities. (For information, refer to Statutes.) These are the same credits allowed for corporation tax computations.

WHEN MUST THE RETURN BE FILED?

The return must be filed within 105 days of the conclusion of the income year (April 15 for calendar year taxpayers).

WHEN MUST THE TAX BE PAID?

Any taxpayer whose estimated tax liability will exceed $500 must pay 50% of the estimated tax by the 15th day of the seventh month of the current income year (July 15 in the case of calendar year taxpayers).

Any taxpayer whose tax liability for the preceding income year did not exceed $500 and which did not reasonably expect that its tax liability for the current income year would exceed $500 until after the last day of the sixth month of the current income year but before the first day of the twelfth month shall pay 50% of the estimated tax by the 15th day of the twelfth month.

Statutory interest at the rate of 1 1/4% per month of fraction thereof shall be assessed on that portion of the estimated tax not paid when due.

EXAMPLES:

Credits For Tax YearsA liability of $3,400 or less is allowed a credit for the full amount of the tax.Liabilities between $3,401 and $5,400 are allowed a partial credit.Individual New York City residents are allowed to claim a credit against their NYC Personal Income Tax for a portion of the UBT payments made as sole proprietors. The amount of the credit depends on the City resident's taxable income for personal income tax purposes. Part-year residents receive a partial credit.

Forms and ReportsForms

The Metropolitan Commuter Transportation Mobility Tax does not need to be added back when filing UBT returns.

Tax Credits

Biotechnology Tax CreditThe biotechnology tax credit is not available for tax years beginning on or after January 1, 2019.

Frequently Asked Questions

You must file the declaration for the calendar year 2022 on or before April 18, 2022, or on the applicable later dates specified in these instructions. Fiscal year taxpayers, read instructions opposite regarding filing dates. front of this form will help you in estimating the tax for 2022.

How do I pay the taxes I owe with my tax returns? - If you owe taxes with your current year tax returns the easiest way to pay those balances is online. Linked below are the respective government websites and instructions. If you can’t pay, see information further down about payment agreements.

If you run into difficulty with any of these websites processes, you can always send out a paper check using the instructions noted in tax return we sent you, but paper checks are far more likely to get lost and miscoded by the government. We strongly recommend using the electronic payment methods above.

What if I can’t pay my tax return balance? If you have a balance due with your 2022 or prior tax returns and will not be able to pay in full by the 4/18 due date, you can request an installment agreement. The agreement allows you more time to pay without escalating collection action, however penalties and interest continue to accrue until the balances are repaid. The current combined penalty and interest rate is around 13%.