§ 620 — Credit for income tax of another state

New York § 620

• Jurisdiction: New York
• Law TAX: Tax
• Part 2: Residents
• Art. 22: Personal Income Tax

Text

§ 620. Credit for income tax of another state. (a) General. A resident\nshall be allowed a credit against the tax otherwise due under this\narticle for any income tax imposed on such individual for the taxable\nyear by another state of the United States, a political subdivision of\nsuch state, the District of Columbia or a province of Canada, upon\nincome both derived therefrom and subject to tax under this article. The\nterm "income tax imposed" in the previous sentence shall not include the\nportion of such tax (determined in the manner provided for in section\nsix hundred twenty-A) which is imposed upon the ordinary income portion\n(or part thereof) of a lump sum distribution which is subject to the\nseparate tax imposed by section six hundred three.\n (b) Pass-through entity taxes. (1) A resident shall be allowed a\ncredit against the tax otherwise due pursuant to this article for any\npass-through entity tax substantially similar to the tax imposed\npursuant to article twenty-four-A of this chapter imposed on the income\nof a partnership or S corporation of which the resident is a partner,\nmember or shareholder for the taxable year by another state of the\nUnited States, a political subdivision of such state, or the District of\nColumbia upon income both derived therefrom and subject to tax under\nthis article.\n (2) Such credit shall be equal to the taxpayer's direct share of the\npass-through entity tax paid by the electing partnership or electing S\ncorporation to such other state, political subdivision of such other\nstate or the District of Columbia.\n (3) However, such credit will be allowed on tax paid only if:\n (A) the state of the United States, political subdivision of such\nstate, or the District of Columbia imposing such tax also imposes an\nincome tax substantially similar to the tax imposed under this article;\nand\n (B) in the case of taxes paid by an S corporation, such S corporation\nwas treated as a New York S corporation.\n (c) Limitations. (1) The credit under this section shall not exceed\nthe percentage of the tax otherwise due under this article determined by\ndividing the portion of the taxpayer's New York income subject to\ntaxation by such other jurisdiction by the total amount of the\ntaxpayer's New York income.\n (2) The credit under this section shall not reduce the tax otherwise\ndue under this article to an amount less than would have been due if the\nincome subject to taxation by such other jurisdiction were excluded from\nthe taxpayer's New York income.\n (3) In the case of a taxpayer who elects to claim the foreign tax\ncredit for federal income tax purposes, the credit under this section\nfor income tax imposed by a province of Canada shall be allowed for that\nportion of the provincial tax not claimed for federal purposes for the\ntaxable year or a preceding taxable year, provided however, to the\nextent the provincial tax is claimed for federal purposes for a\nsucceeding taxable year, the credit under this section must be added\nback in such succeeding taxable year. The provincial tax shall be deemed\nto be claimed last for federal income tax purposes and for purposes of\nthis subsection.\n (d) Definition. For purposes of this section New York income means:\n (1) the New York adjusted gross income of an individual, or\n (2) the amount of the income of an estate or trust, determined as if\nthe estate or trust were an individual computing his New York adjusted\ngross income under section six hundred twelve.\n