How to Complete New York Form IT-2658: Estimated Tax for Nonresident Partners

New York Form IT-2658 is the quarterly estimated tax report a partnership, LLC, LLP, or New York S corporation uses to pay personal income tax, and where applicable the Metropolitan Commuter Transportation Mobility Tax, on behalf of its nonresident individual partners and shareholders. You complete a worksheet for each nonresident, carry the results onto the IT-2658-NYS and IT-2658-MTA schedules, total them on the main form, and mail the package with a check to the NYS Estimated Income Tax Processing Center in Binghamton. There is no electronic filing option.¹

Who Has to File

Tax Law Section 658(c)(4) requires three types of entities with New York source income to make these payments: partnerships (other than publicly traded partnerships under IRC Section 7704), LLCs and LLPs treated as partnerships for federal tax purposes, and New York S corporations. The obligation applies to each nonresident individual partner or shareholder whose estimated New York tax from the entity exceeds $300 for the year. If a particular nonresident falls at or below that $300 threshold, the entity is not required to pay for that person.²

Two boundaries worth noting. Publicly traded partnerships are exempt. And IT-2658 covers only nonresident individuals; estimated payments for C corporation partners go on the separate Form CT-2658.³

Partners You Can Leave Off

Before you calculate anything, identify which nonresidents you don’t need to include. Two exemptions apply.

A nonresident who wants to handle their own New York estimated tax can give the entity a signed Form IT-2658-E. The certificate stays with the entity, not the Tax Department. The current version covers tax years 2026 and 2027 and expires February 1, 2028. Once you have a valid certificate on file for someone, skip them when you compute payments.⁴

You also skip any nonresident who elects to be included on a group return. Partnerships use Form IT-203-GR and S corporations use Form IT-203-S. Those individuals have their New York tax handled through the group return process instead.²

What to Pull Together First

You need the entity’s federal EIN and legal name, and for every nonresident you’ll report: full legal name, Social Security number, mailing address, ownership percentage, actual 2025 or estimated 2026 share of New York source income and related deductions, and any New York credits they will claim from the entity. If a partner wasn’t a member during 2025, use 2026 estimates. For foreign addresses, enter city, then province or state, then country, following the country’s own postal code format and spelling the country name out in full.

Keep the IT-2658-E certificates handy so you can confirm who to exclude.

Running the Numbers

Each nonresident gets two worksheet calculations: personal income tax, and MCTMT if applicable.

Personal Income Tax Worksheet

Working from the worksheet in the IT-2658 instructions:

Line 1: the partner’s actual 2025 or estimated 2026 share of New York source income.
Line 2: the partner’s share of deductions allocated to New York, including their share of federal partnership deductions for medical insurance, IRA contributions, and Keogh or SEP plan contributions allocable to New York.
Line 3: line 1 minus line 2.
Line 4: line 3 multiplied by 10.9% (0.109).
Line 5: New York credits the partner will claim from this entity.
Line 6: line 4 minus line 5. This is the estimated personal income tax for the year.

Older versions of the form used 8.82%. If you’re working from a prior-year instruction packet, confirm you’re on the current 10.9% rate.²

You can pay the full year with the first installment or spread line 6 across four equal quarterly payments by multiplying by 25%. The quarterly amount goes in column D of IT-2658-NYS.

MCTMT Worksheet

MCTMT applies only when partners have net self-employment earnings from activity inside the Metropolitan Commuter Transportation District. The form divides that activity into Zone 1 (the five boroughs of New York City) at 0.60% and Zone 2 (the surrounding MCTD counties) at 0.34%. Complete a separate MCTMT worksheet for each affected partner and carry the results to IT-2658-MTA. If the entity does no business in the MCTD, skip this part entirely.²

Filling In the Schedules and Main Form

The filing package is three documents: the main IT-2658 plus the IT-2658-NYS schedule (personal income tax) and the IT-2658-MTA schedule (MCTMT). Complete the schedules first, then roll the totals forward.

On IT-2658-NYS, fill in four columns for each nonresident:

Column A: name and address.
Column B: Social Security number.
Column C: ownership percentage, rounded to four decimal places. If the actual figure is below 0.0001, round up to 0.0001. Use the prior year’s percentage when the current year’s isn’t yet set.
Column D: the estimated personal income tax payment for that partner from the worksheet.

IT-2658-MTA follows the same layout for MCTMT amounts, with the Zone 1 and Zone 2 figures reported separately.²

On the main form, enter the entity’s EIN and legal name, then carry the totals from the schedules:

Line 1: total number of partners or shareholders listed across all IT-2658-NYS forms.
Line 2: total New York source income.
Line 3: total estimated personal income tax from the IT-2658-NYS forms.
Line 6: total estimated MCTMT from the IT-2658-MTA forms.
Line 7: line 3 plus line 6. This is your payment amount.

Verify every EIN and Social Security number before you mail. Transposed digits cause processing delays and can trigger interest.⁵

Mailing the Package and Meeting the Deadlines

Send the main form, all IT-2658-NYS and IT-2658-MTA schedules, and your check or money order to:

NYS ESTIMATED INCOME TAX PROCESSING CENTER
PO BOX 4123
BINGHAMTON NY 13902-4123

If you use a private delivery service, the address is different; check Publication 55 for the designated private delivery address.²

The 2026 quarterly deadlines are:

1st installment: April 15, 2026
2nd installment: June 15, 2026
3rd installment: September 15, 2026
4th installment: January 15, 2027

When a due date falls on a weekend or legal holiday, it shifts to the next business day. Because there’s no electronic confirmation of filing, certified mail with a return receipt is the cleanest way to prove you were on time.⁶

If You Miss or Underpay

Two penalties can apply, and they stack.

If the entity was required to pay for a nonresident and didn’t, the penalty is $50 per partner or shareholder per failure. The only out is showing reasonable cause and absence of willful neglect.⁷

Even if you pay, paying too little triggers a separate underpayment penalty under Tax Law Section 685(c). You generally avoid it if total estimated payments meet or exceed the smaller of:

90% of the estimated tax required for 2026, or
100% of the estimated tax required for 2025 (110% if the entity isn’t primarily engaged in farming or fishing and the New York source income allocated to nonresidents exceeds $150,000).

Interest on late payments runs at 9.5% as of early 2026 and adjusts quarterly.²⁸

How Partners Get Credit for What You Paid

These payments aren’t lost to the nonresident. Each amount paid on a partner’s or shareholder’s behalf becomes an estimated tax credit on that person’s Form IT-203 nonresident return. If estimated payments exceed their actual New York tax, they get a refund or can apply the overpayment to the next year’s estimated tax.

Give each nonresident a record of what you paid on their behalf so their return matches your filings. The amounts reported on IT-2658-NYS should also reconcile with what the entity later reports on Form IT-204 (partnerships) or CT-3-S (S corporations).

1
New York State Department of Taxation and Finance. Make an estimated income tax payment
2
New York State Department of Taxation and Finance. Instructions for Form IT-2658 Report of Estimated Tax for Nonresident Individual Partners and Shareholders
3
New York State Department of Taxation and Finance. Instructions for Form IT-2658-E Certificate of Exemption from Partnership Estimated Tax
4
New York State Department of Taxation and Finance. Certificate of Exemption from Partnership or New York S Corporation Estimated Tax Paid on Behalf of Nonresident Individual Partners and Shareholders
5
New York State Department of Taxation and Finance. New York State Form IT-2658 – Report of Estimated Tax for Nonresident Individual Partners and Shareholders
6
New York State Department of Taxation and Finance. Year 2026/2027 estimated tax
7
New York State Senate. NY Tax Law 658
8
New York State Department of Taxation and Finance. Interest rates: 1/01/2026 – 3/31/2026