New York State tax question

I reside in the State of Florida. Outside of my 9 to 5, I am a licensed professional boxer. During 2007, 1 of my fights was in Manhattan, New York. I was paid a little over $7,000 for this fight. All of my previous fights have been in Florida, and I complete a Schedule C to attach to my 1040 for my US tax return. Since Florida has not State income tax, I don't file locally.

I received the 1099 from the promoter in New York for what they paid me. I did inculde that in my US 1040. Do I have to file a tax return for the State of New York? What about a city tax? If I have to file a return for New York, do I complete a schedule C with only those expenses that were related to that 1 fight?

Thanks

Reply to
Paul S
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Yes, you will have to file a New York state tax return. (I believe the city tax is computed on the same form.)

I don't know enough about NY tax law to answer the second question.

Reply to
D.F. Manno

New York is still essentially a separate accounting state. You'll file a nonresident NYS return, Form 203A. On Line 6 in the NY column, enter the $7,000 minus the expenses of that event. You would need to use an apportionment formula only if your records didn't allow you to calculate the income and expenses from that event separately. It may not be enough to generate a tax liability.

No New York City income tax since you are a nonresident. However, you are subject to the NYC unincorporated business tax (UBT), and for that purpose you are required to apportion your Schedule C income by a three-factor formula rather than use separate accounting. The rate is

4% of the net income apportioned to NYC. See Form 202-NYC. You can find the form on the New York City Department of Finance web site,
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Katie in San Diego
Reply to
Katie

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