New York City’s Pass-Through Entity Tax Estimated Payment Function is Now Available

The New York Department of Taxation and Finance has updated its online payment system and is now accepting estimates for New York City’s new Pass-Through Entity Tax (PTET).

This elective tax regime, new for 2022, acts as a workaround for New York City residents for the federal $10,000 state and local tax deduction cap. Businesses that have previously elected into the NYC PTET regime are encouraged to make an estimated payment before year-end to ensure that they receive a federal deduction in 2022. The PTET estimates can be made via ACH credit through a business’s Online Services Account under the estimated payment tab.

It should be noted that individual partners and shareholders are still required to make personal city estimates for 2022 regardless of their anticipated credit from the NYC PTET.

For questions regarding the NYC PTET, please refer to our previous alerts here and here, or contact your Anchin Relationship Partner.