If you’re residing in the US, you will be paying federal as well as state taxes in most cases. Whether individuals or businesses, they are supposed to pay the taxes for their income on federal or state premises. However, the rate of taxes in states and federations varies according to the income slabs.
Some states are exempt from taxes, while others have conditions where an individual paying federal taxes is exempt from state taxes.
However, some taxes have tax requirements irrespective of federal taxes. Once the tax return is filed with state and federal tax departments, the tax return processing starts. After the assessment, the tax liability is established, or refunds are issued.
You might be wondering what it is if you have seen an NYS DTF PIT tax payment on your account. In this article, we will discuss the NYS DTF PIT payment and why you are being charged the amount. So let’s get into it.
What Is NYS DTF PIT?
NYS DTF PIT is not one word but a code representing New York state taxes. Let’s decode the acronym:
NYS: New York State
DTF: Department of Tax and Finance
PIT: Personal Income Tax
NY DTF is the New York State Department of Tax & Finance and is responsible for managing and collecting tax revenues for running State affairs. When we talk about NYS DTF PIT, it’s the personal income tax applicable to individuals by the New York State Department of Tax and Finance.
If you’re residing in New York and earning an income there, you will be subject to the state taxes according to your income and payroll. The State Department of Tax & Finance usually charges the payroll taxes automatically on the amount.
Different Taxes Imposed by New York State
Let’s briefly talk about different taxes imposed by the New York State. New York State Department of Taxation and Finance imposes two types of taxes:
Taxes on Individuals – taxes on individuals usually include personal income tax on salaried employees or self-employed people. Besides, it also includes the withholding taxes, real estate taxes, investment taxes, etc., as per the tax guidelines for New York.
Taxes on Businesses – taxes on businesses usually include sales and use tax, withholding taxes, corporation taxes, and many other taxes as per the tax guidelines.
Some additional taxes that the New York State charges are congestion surcharge, Employer Compensation Expense Program(ECEP), Fuel Use Tax, Gasoline, and Motor Fuel Tax, Highway Use Taxes, etc. You can learn more about the business taxes and reporting requirements in New York State here.
New York State Department of Taxation and Finance charges the taxes under the individual category on several entities and individuals. The most popular individual taxes applied by the state are as follows:
- Income tax for individuals, partnerships, LLCs
- Real Estate Taxes
- Real Estate Transfer Taxes
- MCTMT(Metropolitan Commuter Transporation Mobility Tax)
- Mortgage Recording Tax
Personal Income Tax New York State
Personal Income Tax is also an individual tax applied on the income of individuals, LLCs, partnerships, sole proprietorships, etc.
We can define personal income tax as the tax that is paid on the income. The important thing here is the definition of income.
Income cannot be just from salary or wages. It will include retirement pension, interest, lottery winnings, dividends, interest income, unemployment payments, bonuses, tips, monthly remunerations, commissions, etc.
Although all incomes earned by an individual are not taxable, an individual, LLCs, partnerships, etc., are required by the tax department to report all income. Afterward, they can make deductions for untaxable income.
Minimum Filing Requirement For NYS DTF PIT
State tax is not applicable to every individual, but it depends on the state’s minimum filing requirements to determine if tax will be charged or not.
A general requirement for the New York state tax is that you must be a resident of New York State, implying that the main place you live and earn money is in New York. The other requirements for NYS DTF PIT are as follows:
- You are required to file a federal tax return
If you are not eligible for a federal return, but in case you had filed, the national adjusted gross income + New York State additions would be $4,000 or more. When a taxpayer can be claimed on another individual’s return, the adjusted gross income + New York State additions should be $3,100 or more.
- If an individual wants to claim a refund or a credit, he should file the tax return in New York State
- If an individual is subject to a separate tax or lump-sum distribution, he must file a return in New York State.
The conditions we have mentioned are for individuals who are residents of New York State. However, any part-year resident or non-resident must also file the New York State Tax Return if you’re earning income in New York or from New York sources.
How To File for NYS DTF PIT?
If you’re unsure how to file your NYS DTF PIT return, here are the general filing requirements and procedures for ease.
- Every tax year starts on Jan 1st and ends on Dec 31st.
- The income tax return can be filed by Apr 15th.
- You can request an extension of six months by filing Form IT-370 (Application for Automatic Six Month Extension of Time to File for Individuals)
The calculations for the New York State Tax work as follows:
Take your Federal income and add/subtract the New York State Adjustments to reach Adjusted Gross Income. The New York State deductions will be subtracted from AGI to get taxable income.
To find the total tax due, multiply the taxable income with the NYS tax rate. The tax credits and tax payments(withholding) are subtracted from the total tax due to finding a tax bill or refund.
Information Needed To File NYS DTF PIT
You will require personal information, income information, and information for any credits or deductions you want to claim:
- Email address
- Last year’s tax return copy or federal adjusted gross income
- Driver license or state-issued non-driver ID
- Birth dates and SSN of you, your spouse, and dependents
- Banking information like account number and routing number
- Form 1095-A, B, or C, Affordable Healthcare Statement
- Form W-2 –Wages Statement
- Social Security Form: Form SSA-1099
- Form 1099-R –Retirement and Pension Form
- Form 1099-G –Unemployment Form
- Form 1099-INT, Form 1099-DIV –Interest and Dividends
- Different versions of 1099 for reporting all types of income
Credits and Deductions
- Dependent care provider statement
- College tuition statement
- Receipts from property or school taxes paid on home
- Rent receipts if you do not have your own home
Who Must File Income Tax Return In New York State?
We have already given a general description of who should file the New York State tax return. Let’s be specific about when a resident, part-resident, or non-resident must file a tax return in New York.
- You are required to file a federal tax return
If you are not eligible for a federal return, but in case you had filed, the national adjusted gross income + New York State additions would be $4,000 or more.
When a taxpayer can be claimed on another individual’s return, the adjusted gross income + New York State additions should be $3,100 or more.
Non-residents having New York source income when New York Adjusted Gross Income(Form IT-203, Line 31) exceeds the New York State standard deduction amount, you must file a tax return in New York.
Regardless of the amount of NYAGI or income during your residence period in New York, you are required to file a tax return with Form IT-203 for New York State taxes.
What Is NYS DTF Tax Payment?
Now let’s move on to the NYS DTF tax payment.
We have discussed how the income tax return for New York State is calculated using your Federal income and New York source income. You have a refund or tax liability at the end of the calculation.
The tax liability or tax bill represents the NYS DTF Tax payments. In most cases, the New York state deducts the payroll taxes by automated clearing house(ACH).
However, you can decide to receive tax bills using the online Service account or electronic request communications from the State Department of Taxation and Finance.
Why Are You Charging It?
If you’re unsure why your bank statement is showing NYS DTF Tax payment, it’s because you owed taxes to the New York state that have been deducted from your account under payroll taxes.
Besides, New York State Personal Income Tax can be taken out of a taxpayer’s checking account via Automated Clearing House(ACH). You provide the information of your bank when filing the tax return.
We discussed everything you might need to know for NYS DTF PIT, and we hope now you know why the tax payment was appearing on your tax payment.
If you still have any questions and you think that you didn’t expect the tax to be deducted, you can call the IRS and inquire about the payments.