N.Y. Comp. Codes R. & Regs. Tit. 20§ 120.1 - Credit against ordinary tax for income tax of another state, a political subdivision of another state, the District of Columbia, or a province of Canada
Tax Law, § 620(a)
(a)
General.
(1) Where a resident individual receives
income derived from sources within another state of the United States, a
political subdivision of another state, the District of Columbia, or a province
of Canada, such resident individual is entitled to a credit against his or her
ordinary tax (see section
101.1
of this Title) for any income tax imposed on such income by the other
jurisdiction. The term income tax imposed, as used in this
section and in sections
120.2
through
120.5
of this Part, does not include the portion of such tax (determined in
accordance with the provisions of section
120.6[b]
of this Part) imposed on the ordinary income portion (or part thereof) of a
lump sum distribution which is subject to the separate tax imposed by section 603 of the Tax Law. (See section
120.6
of this Part for the credit allowable against the separate tax on the ordinary
income portion [or part thereof] of a lump sum distribution.) A resident estate
or trust is also entitled to a similar credit against ordinary tax, computed in
the same way and subject to the same exception and limitations, set forth in
this section and sections
120.2
through
120.5
of this Part, as in the case of a resident individual.
(2) The credit against ordinary tax is
allowable only for that portion of the income tax imposed by another state of
the United States, a political subdivision of another state, the District of
Columbia, or a province of Canada (or both another state of the United States
and also one or more of its political subdivisions) which is applicable to the
income derived from sources within such other taxing jurisdiction. (See section
120.4[d]
of this Part for the definition of the term income derived from sources
within another jurisdiction, and subdivision [c] of such section for
the definition of income tax imposed by the other
jurisdiction.)
(b)
Method of claiming credit.
(1) If a resident individual claims a credit
against ordinary tax under this Part, such resident individual must attach to
his or her New York State personal income tax return the credit claim
form.
(2) If two or more taxing
jurisdictions (as defined in this paragraph) impose income taxes on the same or
different amounts of income derived from sources within such taxing
jurisdictions, a separate New York State credit claim form must be attached to
the taxpayer's New York State personal income tax return for each jurisdiction
for which credit is claimed. The term two or more taxing
jurisdictions, as used in this section and in section
120.2 of
this Part, means any combination of states (other than New York State),
political subdivisions of different states (other than both a state and one or
more of its political subdivisions as provided in paragraph [3] of this
subdivision), the District of Columbia, and provinces of Canada.
(3) If both a state (other than New York
State) and one or more of the political subdivisions of such state impose
income taxes on the same or different amounts of income, derived from sources
within such state and one or more of its political subdivisions, the sum of the
income taxes paid to the state and its political subdivisions must be reported
on a single credit claim form. (See also section
120.3
of this Part.)
(4) A resident
estate or trust must also comply with the provisions of this subdivision in
order to claim a credit for an income tax of another state, a political
subdivision or subdivisions of another state, the District of Columbia, or a
province or provinces of Canada.
Notes
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