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Thread: NY estimated tax?

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    Default NY estimated tax?

    So-working in NYC now. Trying to figure out my estimated payments for Sept 15 (basically for working August). This form: is making my brain fall out. Melonie? Some other NY ladies?

    Any assistance on that front? You all know I don't want to screw with NYC and its taxes! (I'm not an NY resident, I live in NJ and filing Single. Because I am.) Seems like the tax rates changes with whatever you make, but I'm only working from August in NY.

    Taxes would be so much easier if you just send a percentage of whatever you made instead of having to figure out what you might make. Or at least I wish Quicken would figure it out for me.

    Thanks in advance.

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    Default Re: NY estimated tax?

    All I can tell you in regard to 'easy math' is that for a 'full time' NYC dancer the effective NYC income tax rate works out to be about 3% ... and the associated NY State income tax rate works out to be about 7%.

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    Default Re: NY estimated tax?

    Quote Originally Posted by Melonie View Post
    All I can tell you in regard to 'easy math' is that for a 'full time' NYC dancer the effective NYC income tax rate works out to be about 3% ... and the associated NY State income tax rate works out to be about 7%.
    That's a good start! Thanks Melonie. All that '$640 plus 6.whatever percent of something is a little terrifying.

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    Default Re: NY estimated tax?

    ^^^ yeah ... tell me about it. Then in addition to the 3% NYC income tax and 7% NY State income tax tack on a 28% federal income tax and a 15% Social Security (self-employment) tax - and you've got LESS than 50% of your own money left !!!

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    Default Re: NY estimated tax?


    8/31/08

    Hi:

    As a non-resident of NY, you don't have to pay NYC tax for income earned there. You do owe NYS tax though.

    As far as I can tell, the interest rate ("penalty") for late payment of NYS estimated income tax payment, as of 9/15/08 is 7%. I believe it's not deductible though. So you can stop hyper-ventilating now. Say your NY taxable income for '08 comes to 50K. Your Q3 estimated NYS tax due 9/15 would be about 1,000. If you pay nothing until you file your return on 4/15/09, you'll owe about $35 in interest. Plus you're earning some interest by keeping it in a money market fund during that period. It's not even worth the time trying to figure out what you'd owe. Or make a very quick guesstimate of what you might owe, and send it in with the voucher. If you've underpaid, you'll owe the interest, which will be even less than the $35. If you happen to overpay, you've made a small interest-free loan to NYS for seven months. (I don't think they'll pay you interest on any overpayment, but I'm not sure about that). When you file next April, you or your accountant can calculate the penalty, or NYS will figure it and bill you for it after they get your return.

    What is crucial though, is that you pay the full amount due the feds and NY and NJ by 4/15/09, so just make sure you've set aside enough for that purpose.

    [I'm not a tax professional].

    Good luck.

    James

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    Default Re: NY estimated tax?

    actually, and unfortunately, this is not correct in the context of dancers. New York City levees its unincorporated business tax on any individual whose business activities earn money within NYC ... regardless of their city / state of legal residence. This is why visiting professional sports teams / broadway performers etc. hate this aspect of playing / performing in NYC. And the NYC tax people can and will track down high earners who worked in NYC even if they only worked there a few days out of the year.

    'Employees' are exempt from this unincorporated business tax, but in NYC dancers are not treated as 'employees'.

    see

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    Default Re: NY estimated tax?

    Quote Originally Posted by Pan Dah View Post
    I'm fairly certain you don't. NY State residents who are not NYC residents haven't had to pay City taxes for several years, and the same should apply to residents of other states (NJ) as well. Also, on page 3 of the instructions you linked, it does say "Line 7 — New York City tax (New York City residents only)".
    I knew people used to have to pay double tax Nj/NY, at least from 'regular jobs' AFAIK. I'm quite happy not to.

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    Default Re: NY estimated tax?

    Yes in your scenario you will need to file an IT-201NR non-resident NY state tax return plus a NYC-202 unincorporated business tax return plus a New Jersey resident state tax return. I highly recommend using a full feature tax preparation program like TurboTax for Home and Business which will interlink all of these returns and automatically work out the tax credits in one jurisdiction for taxes paid to the other jurisdiction.

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    Default Re: NY estimated tax?

    ^^ Thankfully I do use that form of Turbotax. Just nervous about the quarterlies.

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