If you have claim of right income for federal tax purposes and are claiming the federal claim of right credit on your federal return, you may also be entitled to a claim of right credit for New York State, New York City, Yonkers, or MCTMT. The claim of right credit is available to individuals, estates, and trusts. Claim of right income is income that was properly reported on a prior year’s tax return, but was later determined to have been paid to you in error and therefore had to be repaid.
If the claim of right credit exceeds the amount of tax imposed for the tax year, the excess will be refunded to you. If you have federal claim of right income but elect to take the federal deduction instead of the credit, you cannot claim a credit for New York State, New York City, Yonkers, or MCTMT. Do not complete this form. However, depending upon the type of income repaid and whether you itemize your deductions for New York State purposes, you may get the deduction.