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New York Resident Credit

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New York Resident Credit


If you were a full-year or part-year resident of New York State, or a New York State resident estate or trust, or a part-year resident trust, and you had income sourced to and taxed by another state, a local government within another state, or the District of Columbia, you may claim a credit against your New York State tax. This credit is allowable only for the portion of the tax that applies to income sourced to and taxed by the other taxing authority while you were a New York State resident. If you paid tax to more than one taxing authority during your New York State resident period, use a separate Form IT-112-R for each credit. However, if you paid tax to both a state and one or more local governments within that state on the same or different amounts of income, use only one Form IT-112-R to claim the resident credit for the taxes paid to the state and local government(s) within that state.

Do not use Form IT-112-R to claim the resident credit for taxes paid to a Canadian province. Instead, you must claim the resident credit (and addback) for taxes paid to a Canadian province on Form IT-112-C, New York State Resident Credit for Taxes Paid to a Province of Canada. See the instructions for Form IT-112-C for more information.

You may not claim a credit for tax paid to the other taxing authority on any amount of income, gain, loss, or deduction arising from interest or dividends from intangible assets unless it is received from an asset connected with a trade or business conducted in the other taxing authority.

If you marked filing status  (Married filing separate return) on Form IT-201 or Form IT-203 and if only one spouse paid tax to another taxing authority, that spouse must compute the credit based on his or her separate return. No part of the credit can be claimed by the spouse who did not have tax payable to the other taxing authority.

If you are a fiduciary of a resident estate or trust, determine the total New York adjusted gross income in Part 1 the same way as a resident individual. To determine New York adjusted gross income, subtract any charitable contributions and distributions made to beneficiaries. Include these amounts on line 19.

A shareholder of a subchapter S corporation is not allowed a resident credit for any income tax imposed upon or payable by the S corporation to another state, local government, or the District of Columbia. However, a shareholder is allowed a resident credit if taxes are calculated on the income of the S corporation, but are imposed upon and payable by the shareholder.

Taxpayers with dual residency status – If you are a resident of New York State for personal income tax purposes and also deemed a resident of another state for income tax purposes under its law, no credit is allowed if the other jurisdiction allows a credit against its tax for the total resident tax paid to New York.

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Views: 1803 Created on: Jun 15, 2013
Date updated: Dec 08, 2021
Posted in: States, New York

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