START-UP NY Metropolitan Commuter Transportation Mobility Tax (MCTMT) Exemption
Self- Employed Individuals (including Partners)
The MCTMT exemption eliminates the MCTMT on your net earnings from self-employment attributable to your approved business location within the MCTD for a tax benefit period of 10 consecutive years. The exemption begins with the tax year the approved business locates in the tax-free NY area.
How to compute your MCTMT
You must still report annual MCTMT information if your total net earnings from self-employment allocated to the MCTD (both inside and outside the tax-free NY area) exceed $50,000 for the tax year. However, your net earnings attributable to the tax free NY area within the MCTD are excluded from the computation of your MCTMT liability.
| Step1 | Calculate your total net earnings from self-employment in the MCTD, including earnings inside and outside the tax-free NY area. Use this amount to determine if you exceed the $50,000 threshold and are subject to MCTMT. |
| Step 2 | Subtract from your total net earnings the net earnings from self-employment from the tax-free NY area within the MCTD. |
| Step 3 | Multiply the amount calculated in Step 2 by .34%. |
Example: Taxpayer A is a partner in two partnerships. Taxpayer A has total net earnings from self-employment within the MCTD of $100,000 of which $60,000 is from a partnership in the tax-free NY area within the MCTD. Taxpayer A's MCTMT is $136 ($40,000 x .34%).
How to claim the exemption
- For tax year 2014, you must have an Online Services account and Web File your START-UP NY MCTMT information by the 30th day of the fourth month following the close of your tax year (April 30, 2015, if you are a calendar-year filer).
- For tax years after 2014, report your MCTMT annual information on your New York State personal income tax return.
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