us-ny-return-assembly

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Section 1 — Scope

Produces the complete federal + New York filing package for:

• Full-year New York State residents (including NYC residents)
• Sole proprietors or single-member LLCs disregarded for federal tax
• Tax year 2025
• Filing Form 1040 (federal), IT-201 (NY State), NYC-202 (NYC UBT, if applicable)

Section 2 — Execution order

0. Step 1 — us-sole-prop-bookkeeping
1. Step 2 — us-schedule-c-and-se-computation
2. Step 3 — us-self-employed-retirement
3. Step 4 — us-self-employed-health-insurance
4. Step 5 — us-qbi-deduction
5. Step 6 — us-federal-return-assembly
6. Step 7 — us-quarterly-estimated-tax
7. Step 8 — us-1099-nec-issuance
8. Step 9 — ny-it-201-individual-return
9. Step 10 — nyc-ubt-form-202
10. Step 11 — ny-estimated-tax-it-2105
11. Step 12 — ny-mctmt
12. Step 13 — THIS SKILL — final assembly and verification

Federal internal consistency

• Schedule C net profit flow — Schedule C net profit → Schedule 1 Line 3 → Form 1040 Line 8
• Schedule SE tax flow — Schedule SE tax → Schedule 2 Line 4 → Form 1040 Line 23
• Half of SE tax flow — Half of SE tax → Schedule 1 Line 15 → Form 1040 Line 10
• SE retirement flow — SE retirement → Schedule 1 Line 16 → Form 1040 Line 10
• SE health insurance flow — SE health insurance → Schedule 1 Line 17 → Form 1040 Line 10
• QBI deduction flow — QBI deduction → Form 1040 Line 13
• Total tax flow — Total tax → Form 1040 Line 24
• Form 2210 penalty — Form 2210 penalty (if applicable)
• Total payments flow — Total payments → Form 1040 Line 33

New York internal consistency

• Federal AGI starting point — Federal AGI → IT-201 Line 19 (starting point)
• NY additions — NY additions (IT-201 Lines 20-23): interest income on non-NY state/local bonds, QBI deduction add-back (NY does not allow QBI deduction)
• NY subtractions — NY subtractions (IT-201 Lines 24-32): interest on US government obligations, NY state/local pension exclusion
• NY AGI flow — NY AGI → IT-201 Line 33
• NY standard deduction — $8,000 single / $16,050 MFJ vs NY itemized deduction (IT-201 Line 34-35) (IT-201 Line 34-35)
• NY itemized deduction limitation threshold — 50% limitation on charitable contributions and other adjustments if NY AGI > $525,000
• NY taxable income flow — NY taxable income → IT-201 Line 38
• NY tax computation — NY tax → IT-201 Line 39 (from tax computation worksheet or tax table)
• NYC resident tax flow — NYC resident tax → IT-201 Lines 47-51 (if NYC resident)
• NYC UBT credit flow — NYC UBT credit → IT-201 Line 51 (partial credit against NYC personal income tax)
• NY household credit — NY household credit → IT-201 Line 40 (if income below threshold)
• Total NY tax flow — Total NY tax → IT-201 Line 62
• NY estimated tax payments flow — NY estimated tax payments → IT-201 Line 67
• NY refund or balance due flow — NY refund or balance due → IT-201 Line 78 or 80

NYC UBT consistency (if applicable)

• Gross income from NYC business flow — Gross income from NYC business → Form NYC-202 Line 1
• NYC UBT deductions flow — NYC UBT deductions → Form NYC-202 Lines 2-12
• NYC UBT taxable income flow — NYC UBT taxable income → Form NYC-202 Line 13
• NYC UBT exemption calculation — $95,000, phaseout $95K-$150K USD (Form NYC-202 Line 14-16)
• UBT tax rate — 4% (of taxable income after exemption) (Section 7 — NY-specific tax framework > NYC Unincorporated Business Tax (UBT) — Form NYC-202)
• UBT credits available — UBT credits available → NYC-202 Line 18+
• UBT estimated payments — UBT estimated payments → NYC-202 Schedule F
• UBT balance due or refund — UBT balance due or refund

Federal-NY coordination

• Federal AGI as NY starting point — Federal AGI used correctly as NY starting point
• QBI add-back for NY — QBI deduction properly added back for NY (NY does not conform to §199A)
• Filing status consistency — Filing status consistent
• Dependents consistency — Dependents consistent
• NY itemized deductions basis — NY itemized deductions use federal Schedule A as starting point but apply NY modifications: - State/local tax deduction: included for NY purposes (no $10,000 SALT cap at state level) - College tuition deduction (IT-201 Line 30): up to $10,000 per student (IT-201 Line 30)
• Depreciation conformity — NY generally conforms to federal MACRS but has modifications for bonus depreciation (NY decoupled from 100% bonus; add-back required, then NY allows its own depreciation deduction)

MCTMT verification

• MCTMT threshold — $50,000 USD (only taxed if net SE earnings in MCTD exceed $50,000)
• MCTMT rate — 0.34% (on net SE earnings > $50,000 allocated to MCTD) (Section 7 — NY-specific tax framework > Metropolitan Commuter Transportation Mobility Tax (MCTMT))
• Net SE earnings allocation to MCTD — Net self-employment earnings allocated to MCTD
• MCTMT amount flow — MCTMT amount → Form MTA-6

Estimated tax reconciliation

• Federal safe harbor — Federal: 4 quarterly payments cross-checked against safe harbor (100% prior year tax if AGI ≤ $150K, 110% if AGI > $150K)
• NY State safe harbor — NY State: payments on IT-2105 cross-checked against NY safe harbor (100% prior year NY tax or 90% current year)
• UBT estimated tax quarterly payment threshold — $3,400 USD (quarterly payments required if UBT liability expected to exceed this amount) (Section 7 — NY-specific tax framework > NYC Unincorporated Business Tax (UBT) — Form NYC-202)
• IT-2105.9 underpayment penalty — Form IT-2105.9 (NY underpayment penalty) if applicable

Additions to federal AGI (common for freelancers)

• QBI deduction add-back — NY does not allow the §199A deduction. Full federal QBI deduction amount added back on IT-225 Line 1 (code A-201) (IT-225 Line 1 (code A-201))
• Bonus depreciation add-back — If federal return claimed bonus depreciation, NY requires add-back of the federal bonus amount, then allows NY depreciation (generally MACRS without bonus). IT-225 code A-110. (IT-225 code A-110)
• Other states' municipal bond interest — Interest from non-NY state/local bonds is added to NY income

Subtractions from federal AGI (common for freelancers)

• US government obligation interest — Interest on US Treasury securities subtracted from NY income (IT-225 code S-103) (IT-225 code S-103)
• College tuition subtraction — Up to $10,000 per eligible student (IT-225 code S-106) USD (IT-225 code S-106)
• NY depreciation subtraction — Replacement depreciation deduction for assets where bonus depreciation was added back (IT-225 code S-110) (IT-225 code S-110)

NYC UBT credit mechanism

• NYC UBT not deductible on Schedule C — The taxpayer cannot deduct NYC UBT as a business expense on the federal Schedule C (it is a tax, not a deductible business expense).
• NYC UBT credit generation — NYC UBT paid generates a partial credit against NYC personal income tax (IT-201 Line 51) (IT-201 Line 51)
• NYC UBT credit amount — The credit equals the lesser of: (a) the UBT tax, or (b) the NYC personal income tax before the credit
• Double-taxation prevention — Effectively prevents double-taxation of NYC business income at both UBT and personal income tax levels, but the credit is not always dollar-for-dollar

Section 5 — Refusals

• R-NY-1 — Upstream skill did not run. Name the specific skill and refuse until it executes. (R-NY-1)
• R-NY-2 — Multi-state allocation required. If income sourced to states other than NY was not identified at intake and appears in documents, refuse. Multi-state allocation requires IT-203/credit for taxes paid analysis. (R-NY-2)
• R-NY-3 — NYC UBT allocation dispute. If the taxpayer performed significant business activity outside NYC but is a NYC resident, allocation percentage is complex. Flag for reviewer if allocation is not clearly 100%. (R-NY-3)
• R-NY-4 — Partnership/S-corp income discovered. K-1 income appearing in documents that was not disclosed at intake. Refuse and recommend CPA. (R-NY-4)
• R-NY-5 — NY PTET (Pass-Through Entity Tax) election. If the SMLLC elected into NY PTET, different treatment applies. Refuse unless PTET skill is available. (R-NY-5)

Documents

1. Executive summary — filing status, income, federal tax, NY tax, NYC tax, NYC UBT, MCTMT, total liability, refund/balance due
2. Federal Form 1040 worksheet — line-by-line
3. Schedule C — sole prop P&L
4. Schedule SE — SE tax
5. Schedule 1, 2, 3 — adjustments, additional taxes, credits
6. Form 8995 or 8995-A — QBI
7. Form 2210 — federal underpayment penalty (if applicable)
8. Form 1040-ES — 2026 federal estimated tax schedule
9. NY IT-201 worksheet — line-by-line state return
10. IT-225 — NY addition and subtraction modifications
11. NYC-202 worksheet — UBT computation (if NYC resident)
12. IT-2105 — 2026 NY estimated tax schedule
13. IT-2105.9 — NY underpayment penalty (if applicable)
14. Form MTA-6 — MCTMT (if applicable)
15. 1099-NEC batch — contractor information returns (if applicable)
16. Reviewer brief — comprehensive narrative
17. Taxpayer action list — deadlines, amounts, payment methods

Reviewer brief structure

# Complete Return Package: [Taxpayer Name] — Tax Year 2025

## Executive Summary
- Filing status: [X]
- Residence: New York ([NYC / rest of state])
- Business: Sole proprietor / SMLLC disregarded
- Federal total tax: $X
- NY State tax: $X
- NYC personal income tax: $X
- NYC UBT: $X
- MCTMT: $X
- Total 2025 tax liability: $X
- Total payments (federal + NY + NYC): $X
- Net refund or balance due: $X

## Federal Return
[Federal assembly content]

## New York State Return (IT-201)
- Federal AGI: $X
- NY additions: $X (QBI add-back $X, bonus depreciation $X, other $X)
- NY subtractions: $X
- NY AGI: $X
- NY deduction (standard/itemized): $X
- NY taxable income: $X
- NY tax (from table/worksheet): $X
- NYC personal income tax: $X
- NYC UBT credit applied: $X
- NY household credit: $X (if applicable)
- Net NY/NYC tax: $X
- NY estimated payments applied: $X
- NY balance due or refund: $X

## NYC Unincorporated Business Tax (if applicable)
- Gross business income in NYC: $X
- Allocable deductions: $X
- NYC UBT taxable income: $X
- Exemption applied: $X
- UBT at 4%: $X
- UBT credits: $X
- Net UBT: $X
- UBT estimated payments: $X
- UBT balance due or refund: $X

## MCTMT (if applicable)
- Net SE earnings in MCTD: $X
- MCTMT (0.34%): $X

## Cross-jurisdiction reconciliation
- Federal AGI matches IT-201 starting point: [verified]
- QBI add-back computed correctly: [verified]
- NYC UBT credit does not exceed NYC personal income tax: [verified]
- All estimated payments allocated correctly: [verified]

## Reviewer attention flags
[Aggregated flags]

## Positions taken
[With citations to IRC, NY Tax Law, NYC Admin Code]

## Planning notes for 2026
- NY PTET election consideration (if beneficial)
- NYC UBT estimated tax adjustment
- Federal/NY/NYC estimated tax coordination
- S-corp election analysis (potential NYC UBT savings)

Executive Summary

• Filing status: [X]
• Residence: New York ([NYC / rest of state])
• Business: Sole proprietor / SMLLC disregarded
• Federal total tax: $X
• NY State tax: $X
• NYC personal income tax: $X
• NYC UBT: $X
• MCTMT: $X
• Total 2025 tax liability: $X
• Total payments (federal + NY + NYC): $X
• Net refund or balance due: $X

Federal Return

[Federal assembly content]

New York State Return (IT-201)

• Federal AGI: $X
• NY additions: $X (QBI add-back $X, bonus depreciation $X, other $X)
• NY subtractions: $X
• NY AGI: $X
• NY deduction (standard/itemized): $X
• NY taxable income: $X
• NY tax (from table/worksheet): $X
• NYC personal income tax: $X
• NYC UBT credit applied: $X
• NY household credit: $X (if applicable)
• Net NY/NYC tax: $X
• NY estimated payments applied: $X
• NY balance due or refund: $X

NYC Unincorporated Business Tax (if applicable)

• Gross business income in NYC: $X
• Allocable deductions: $X
• NYC UBT taxable income: $X
• Exemption applied: $X
• UBT at 4%: $X
• UBT credits: $X
• Net UBT: $X
• UBT estimated payments: $X
• UBT balance due or refund: $X

MCTMT (if applicable)

• Net SE earnings in MCTD: $X
• MCTMT (0.34%): $X

Cross-jurisdiction reconciliation

• Federal AGI matches IT-201 starting point: [verified]
• QBI add-back computed correctly: [verified]
• NYC UBT credit does not exceed NYC personal income tax: [verified]
• All estimated payments allocated correctly: [verified]

Reviewer attention flags

[Aggregated flags]

Positions taken

[With citations to IRC, NY Tax Law, NYC Admin Code]

Planning notes for 2026

• NY PTET election consideration (if beneficial)
• NYC UBT estimated tax adjustment
• Federal/NY/NYC estimated tax coordination
• S-corp election analysis (potential NYC UBT savings)

Section 7 — Taxpayer action list structure

## Taxpayer Action List

### Before April 15, 2026:
1. Review and sign return package
2. Pay federal balance due: $X via EFTPS / IRS Direct Pay
3. Pay NY balance due: $X via NY DTF Online Services
4. Pay NYC UBT balance due: $X via NYC DOF eFiling (if applicable)
5. Pay 2026 Q1 federal estimated tax: $X
6. Pay 2026 Q1 NY estimated tax: $X (25% of annual estimate)
7. Pay 2026 Q1 NYC UBT estimated tax: $X (if applicable)
8. File MCTMT annual return (if applicable)

### Before June 16, 2026:
1. Pay 2026 Q2 federal estimated tax: $X
2. Pay 2026 Q2 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q2 NYC UBT estimated tax: $X (if applicable)

### Before September 15, 2026:
1. Pay 2026 Q3 federal estimated tax: $X
2. Pay 2026 Q3 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q3 NYC UBT estimated tax: $X (if applicable)

### Before January 15, 2027:
1. Pay 2026 Q4 federal estimated tax: $X
2. Pay 2026 Q4 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q4 NYC UBT estimated tax: $X (if applicable)

### Ongoing:
1. Collect W-9 from new contractors before payment
2. Track business expenses with receipts
3. Monitor income for UBT exemption phaseout
4. Consider S-corp election if net SE income exceeds $150K+ (reduces SE tax and eliminates UBT)

Before April 15, 2026:

1. Review and sign return package
2. Pay federal balance due: $X via EFTPS / IRS Direct Pay
3. Pay NY balance due: $X via NY DTF Online Services
4. Pay NYC UBT balance due: $X via NYC DOF eFiling (if applicable)
5. Pay 2026 Q1 federal estimated tax: $X
6. Pay 2026 Q1 NY estimated tax: $X (25% of annual estimate)
7. Pay 2026 Q1 NYC UBT estimated tax: $X (if applicable)
8. File MCTMT annual return (if applicable)

Before June 16, 2026:

1. Pay 2026 Q2 federal estimated tax: $X
2. Pay 2026 Q2 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q2 NYC UBT estimated tax: $X (if applicable)

Before September 15, 2026:

1. Pay 2026 Q3 federal estimated tax: $X
2. Pay 2026 Q3 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q3 NYC UBT estimated tax: $X (if applicable)

Before January 15, 2027:

1. Pay 2026 Q4 federal estimated tax: $X
2. Pay 2026 Q4 NY estimated tax: $X (25% of annual estimate)
3. Pay 2026 Q4 NYC UBT estimated tax: $X (if applicable)

Ongoing:

1. Collect W-9 from new contractors before payment
2. Track business expenses with receipts
3. Monitor income for UBT exemption phaseout
4. Consider S-corp election if net SE income exceeds $150K+ (reduces SE tax and eliminates UBT)

Section 8 — Self-checks

Check NY-A1 — All upstream skills executed. Check NY-A2 — Federal AGI correctly flows to IT-201 Line 19. Check NY-A3 — QBI deduction added back on IT-225 (NY does not allow §199A). Check NY-A4 — NYC UBT computed if NYC resident with business income. Check NY-A5 — NYC UBT credit does not exceed NYC personal income tax. Check NY-A6 — MCTMT computed for MCTD-area self-employed with earnings > $50K. Check NY-A7 — NY estimated tax underpayment penalty evaluated (IT-2105.9). Check NY-A8 — Bonus depreciation add-back and replacement NY depreciation computed. Check NY-A9 — NY standard vs itemized deduction: correct election made (NY allows different election than federal). Check NY-A10 — Payment instructions include all four jurisdictions where applicable (federal, NY, NYC personal, NYC UBT).

Section 9 — Output files

Three files:

1. [taxpayer_slug]_2025_master.xlsx — Sheets: Cover, Income, Schedule C, Schedule SE, Retirement, SE Health, QBI, Schedule 1, Form 1040, Form 2210, IT-201, IT-225, NYC-202, IT-2105.9, MTA-6, 1099-NEC batch, 2026 Est Tax (Fed+NY+NYC).

2. reviewer_brief.md — Full narrative covering federal, NY State, NYC, MCTMT, cross-jurisdiction reconciliation, flags, citations, planning.

3. taxpayer_action_list.md — Step-by-step with dates, amounts, and payment URLs (EFTPS, NY DTF, NYC DOF).

Section 10 — Known gaps

1. NY PTET election analysis not automated (requires entity-level election before filing deadline)
2. NYC UBT allocation for taxpayers performing work both inside and outside NYC is complex and may require reviewer judgment
3. NY bonus depreciation add-back computation requires detailed asset-by-asset tracking
4. Form IT-2658 (group estimated tax for partnerships) not applicable but flagged to avoid confusion
5. NYC-210 (Claim for NYC School Tax Credit) automatically claimed on IT-201 if eligible — verify $125 (single) or $250 (MFJ) credit
6. NY Earned Income Credit (30% of federal EIC) — verify if applicable

End of Skill

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