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Page 16 of 41 IT-201-I (2025) – If either spouse’s individually calculated MCTMT net earnings base in Zone 2 is $50,000 or less, do not include that spouse’s base on line 54b. Example: You are filing a joint return. You have net earnings from self-employment totaling $120,000 in the MCTD, of which, $75,000 is allocated to Zone 1, and $45,000 is allocated to Zone 2. Your spouse also has net earnings from self-employment totaling $105,000, of which, $51,000 is allocated to Zone 1, and $54,000 is allocated to Zone 2. Since each spouse’s individually calculated net earnings from self-employment allocated to Zone 1 exceed the $50,000 threshold, you must add the two amounts together ($75,000 + $51,000) and enter the total of $126,000 on line 54a. Since your net earnings from self-employment allocated to Zone 2 is less than the $50,000 threshold, do not include your net earnings in the total on line 54b. However, you must enter your spouse’s net earnings from self-employment allocated to Zone 2 of $54,000 on line 54b. MCTD allocation percentage Determining the Metropolitan Commuter Transportation District allocation percentage for each source of self-employment income: • START-UP NY approved business owners or partners of an approved business who have net earnings from self-employment allocated to either zone of the MCTD, must complete Form IT-6-SNY, Metropolitan Commuter Transportation Mobility Tax (MCTMT) for START-UP NY. If you have other sources of self-employment income allocated to either zone of the MCTD (other than the START-UP NY income), calculate those amounts as shown below. You must include all your net earnings from self-employment allocated to: – Zone 1 on Form IT-6-SNY, line 1. – Zone 2 on Form IT-6-SNY, line 6. Note: You must enter the amounts from Form IT-6-SNY, line 5 or 10 on Form IT-201, line 54a or 54b, as applicable. It is possible that the amounts on Form IT-201, line 54a or 54b may be $50,000 or less. Example: You have total net earnings from self-employment within Zone 1 of $80,000. Since this amount exceeds the $50,000 threshold, you are subject to the MCTMT. However, because $45,000 is from the tax-free NY area within Zone 1, you will be able to exclude $45,000 from the net earnings base on which you will calculate the MCTMT. Therefore, your net earnings used to calculate the MCTMT is $35,000. You calculated the MCTMT net earnings base as follows: • Partners must allocate partnership income to each zone of the MCTD based on the partnership’s allocation. Partners will receive their Zone 1 or Zone 2 (or both) allocation percentage from their partnership on Form IT-204-IP, New York Partner’s Schedule K-1. – Zone 1- Multiply your net partnership income by the Zone 1 allocation percentage from Form IT-204-IP, line 29b, to determine the amount to include on line 54a. Net earnings subject to MCTMT in Zone 1 reported on Form IT-6-SNY, line 1 = $80,000 START-UP NY net earnings in the tax-free area in Zone 1 reported on Form IT-6-SNY, line 4 = $45,000 MCTMT net earnings base for Zone 1 reported on Form IT-6-SNY, line 5 and Form IT-201, line 54a = $35,000 – Zone 2- Multiply your net partnership income by the Zone 2 allocation percentage from Form IT-204-IP, line 29c, to determine the amount to include on line 54b. If you are a partner in more than one partnership, calculate the amount separately for each partnership. Example: You are a partner in a partnership XYZ doing business in Zone 1. You also report net earnings from self- employment from two businesses that report their activity on federal Schedule C (Form 1040). Business A carries on business both in and out of Zone 1. Business B carries on business only inside Zone 1. You calculate the amount to enter on Line 54a as follows: • All others: – Zone 1 – • If all your net earnings from self-employment are from business activity carried on inside Zone 1, then all your net earnings from self-employment are allocated to Zone 1. Include the total net earnings from self-employment for that source on line 54a. • If your net earnings from self-employment are from business activity both inside and outside Zone 1, you must complete Form IT-203-A, Business Allocation Schedule, to calculate the amount to include on line 54a. – Zone 2 – • If all your net earnings from self-employment are from business activity carried on inside Zone 2, then all your net earnings from self-employment are allocated to Zone 2. Include the total net earnings from self-employment for that source on line 54b. • If your net earnings from self-employment are from business activity both inside and outside Zone 2, you must complete Form IT-203-A, Business Allocation Schedule, to calculate the amount to include on line 54b. Note: For the definition of business activity inside and outside either zone of the MCTD, see Form IT-203-A-I, Instructions for Form IT-203-A. Net earnings from self-employment generally is the amount reported on federal Schedule SE (Form 1040), Part 1, line 6, derived from the source of self-employment income. Under IRC § 1402, income from certain employment is treated as income from a trade or business, and is reported on federal Schedule SE (Form 1040) as net earnings from self-employment. Accordingly, the income is included in an individual’s calculation of net earnings from self-employment allocated to the MCTD and is subject to the MCTMT. Types of employment treated as a trade or business under IRC § 1402 include but are not limited to: • services performed by a United States citizen employed by a foreign government, the United Nations, or other international organization; 1. Net partnership income of $80,000 multiplied by 65% (0.65), the Zone 1 allocation percentage shown on Form IT-204-IP, line 29b = $52,000 2. Business B’s net earnings from self-employment of $36,000 = $36,000 3. Business A’s net earnings from self-employment of $30,000. Since the business is carried on both in and out of Zone 1, use Form IT-203-A to calculate the amount to include: Net earnings of $30,000 × 40% (Form IT-203-A, line 8) = $12,000 4. Total amount to be included on line 54a = $100,000