Do I Need to File NYC Return?

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Do I need to file NYC return?
Generally, you must file a New York State resident income tax return if you are a New York State resident and meet any of the following conditions: You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay. You want to claim any refundable or carryover credits.
Read more on www.tax.ny.gov

In addition to the federal and state income taxes, New York City also levies its own income tax. As a result, you might need to submit a New York City tax return if you reside or work in the city. Depending on your income, residency status, and other circumstances, you may or may not need to file a return. What is Form NYC 204, exactly?

Limited liability corporations (LLCs) that are taxed as partnerships and partnerships use Form NYC 204 to file their tax returns. If any of these entities get any income, gains, losses, or deductions from New York City sources, they must submit a New York City partnership report. The form details the income and expenses of the partnership as well as the distributive share of each partner’s earnings.

Should S Corp status be chosen annually?

No, once a company chooses to be a S corporation with the IRS, that choice is final and cannot be changed or cancelled. S corporations must, however, submit Form 1120S, an annual tax return, to the IRS. The corporation’s earnings, deductions, and other details are included in the return, along with the amount of profit or loss that was distributed to each shareholder.

Can I still choose S Corp in 2021? Yes, you can elect S corporation status for the 2021 tax year by submitting Form 2553 to the IRS if your company qualifies. Your company must fulfill specific criteria, such as having no more than 100 shareholders and just one class of stock, in order to be eligible for S corporation status.

In a S Corp, do you have to pay yourself a salary?

You must be paid fairly for any services you render to the company as a S corporation shareholder-employee. Payroll taxes, such as Social Security and Medicare taxes, are due on this salary. Payroll taxes do not apply to any gains, however, that are given to shareholders in excess of their fair compensation.

In conclusion, depending on your income and residency status, you might need to file a New York City tax return if you reside or work in the city. Partnerships and LLCs taxed as partnerships must disclose their revenue and spending on Form NYC 204. S corporations must file an annual tax return even though they are not obligated to elect S company status every year. S corporation shareholder-employees must be paid a fair wage for their work, which is subject to payroll taxes.

FAQ
Can an S corp have no employees?

An S corporation can exist without any employees, yes. S corporations are not obliged to have any employees, although they are permitted to have one or more stockholders.