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New York City Taxes

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Level 2

Entered all client info. Received the REP but there is no NYC tax calculated. Client works in NYC and lives in Long Island City.

Can not get Lacerte to calculate tax and I know it is due

What am I doing wrong

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1 Solution

Accepted Solutions
Highlighted
Level 15

That's because Long Island City is not one of the 5 boroughs that are subject to NYC resident tax.

NYC NR tax was ruled unconstitutional eons ago.  Unless your client is an employee of a NYC government agency, he/she is not subject to NYC tax.

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Still an AllStar

View solution in original post

7 Replies 7
Highlighted
Level 15

More info needed.

Wages? Did you enter New York City Income Tax withheld? 

Full year resident?

 


ex-AllStar
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Highlighted
Level 2

Two W-2 both with City Income and Taxes deducted. Individual is not a city resident but lives in Long Island City, Queens County, NY

Highlighted
Level 2

Yes to the NYC Income Tax, it was entered

Highlighted
Level 15

That's because Long Island City is not one of the 5 boroughs that are subject to NYC resident tax.

NYC NR tax was ruled unconstitutional eons ago.  Unless your client is an employee of a NYC government agency, he/she is not subject to NYC tax.

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Still an AllStar

View solution in original post

Highlighted
Level 2

Thank you

Highlighted
Level 15

@RC18I must stand corrected.  I had mistaken Long Island City for Long Island.

I just checked that it's in Queens and that's one of the 5 boroughs.  See page 14 of IT201 instructions.  The fact that the numbers are not flowing has to do with input.

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Still an AllStar
Highlighted
Level 15

One key input you need to make for Lacerte to compute NYC tax is on Screen 1.

Under the section for New York Information, you must choose NYC full year for NYC/Yonkers Resident, assuming your client was indeed a FY resident.  That will trigger Lacerte to compute NYC tax and flow the numbers to Line 47 on pg. 3 of IT-201.

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Still an AllStar