New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 2 - Residents › Part 112 - New York Adjusted Gross Income Of A Resident Individual › Section 112.2 - Modifications increasing Federal adjusted gross income

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 606(g)(9), 606(l)(3), 612(b), 617-a
The following items are to be added to Federal adjusted gross income in determining the New York adjusted gross income of a resident individual:
(a) Interest income on obligations of any state, other than New York State, or of a political subdivision of any such other state (including that part of an exempt-interest dividend, as described in section  852[b][5] of the Internal Revenue Code, paid by a regulated investment company which is derived from any such obligations), unless created by compact or agreement to which New York State is a party, to the extent not properly includible in Federal adjusted gross income. (See section 612[b][1] of the Tax Law.)
Example:
Interest income received by a resident individual on bonds of the State of California must be added to such individual's Federal adjusted gross income in arriving at such individual's New York adjusted gross income, as this interest income is subject to New York State personal income tax, but not to Federal income tax.
(b) Interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States, which the laws of the United States exempt from Federal income tax but not from state income taxes. (See section 612[b][2] of the Tax Law.)
(c)
Income taxes.
(1) General. Income taxes imposed by New York State or any other taxing jurisdiction, to the extent deductible in determining Federal adjusted gross income and not credited against Federal income tax. (See section 612[b][3] of the Tax Law.)
Example:
Where New York City unincorporated business income tax was deducted in determining Federal adjusted gross income, the amount of such tax must be added to Federal adjusted gross income, since income taxes are not deductible for New York State personal income tax purposes. Where, however, a particular tax is not deducted in determining Federal adjusted gross income but is credited against the amount of Federal income tax, no addition is necessary. For example, where the amount of foreign income tax is credited against the total Federal income tax of a taxpayer, no modification need be made for the amount of such income tax credit since it was not deducted in determining Federal adjusted gross income.
(2) Shareholders of S corporations. In the case of a shareholder of an S corporation, (i) where the election provided for in section 660 (a)  of the Tax Law is in effect, with regard to the taxes imposed upon or payable by such S corporation, the term
income taxes
as used in paragraph (1) of this subdivision shall include the Franchise Tax on Business Corporations imposed under article 9-A of the Tax Law, regardless of the measure of such tax; (ii) where the election provided for in section 660 (a)  of the Tax Law is in effect, or where such election cannot be made, such term
income taxes
shall not otherwise include any taxes imposed by this State or any other state of the United States, or any political subdivision of this State (
e.g.,
the New York City General Corporation Tax under chapter 6 of title 11 of the Administrative Code of the City of New York) or any other state, or the District of Columbia imposed upon or payable by such S corporation.