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 120 - Resident Credits For Income Taxes Of Another State, A Political Subdivision Of Another State, The District Of Columbia, Or A Province Of Canada › Section 120.6 - Credit against separate tax on the ordinary income portion of a lump sum distribution

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 620-A
(a)
General.
A resident individual, estate or trust is entitled to a
						credit under this section against the separate tax imposed by section 603  of the Tax Law on the ordinary income
						portion (or part thereof) of a lump sum distribution. This credit is allowable
						with respect to any income tax imposed for the taxable year by another state of
						the United States, a political subdivision of such state, the District of
						Columbia, or a province of Canada on such ordinary income portion (or part
						thereof) of a lump sum distribution which is derived from a business, trade,
						profession, occupation or from personal services as an employee within such
						taxing jurisdiction and is subject to tax under section 603  of the Tax Law. (See subdivision [b] of
						this section for the determination of income tax imposed by another
						jurisdiction.) However, no credit is allowable under this section if no income
						tax is actually due to the other jurisdiction with respect to the ordinary
						income portion (or part thereof) of a lump sum distribution. Further, no credit
						is allowable if the other jurisdiction provides an exemption of its income tax
						on the ordinary income portion (or part thereof) of a lump sum distribution to
						a New York State resident subject to the New York State separate tax on such
						income.
(b)
Determination of income tax imposed by another jurisdiction.
(1) Where the ordinary income portion (or
					 part thereof) of a lump sum distribution is subject to separate income taxation
					 by another state of the United States, a political subdivision of such state,
					 the District of Columbia, or a province of Canada, the amount of separate tax
					 imposed on such income by such jurisdiction (reduced by any applicable credits
					 of such jurisdiction, exclusive of prepayments) is the amount which constitutes
					 the income tax imposed on the ordinary income portion (or part thereof) of a
					 lump sum distribution by such other jurisdiction.
(2) Where such ordinary income portion (or
					 part thereof) of a lump sum distribution is not subject to separate income
					 taxation by such other taxing jurisdiction, but is included as income in
					 determining the income tax imposed by such jurisdiction, the portion of such
					 income tax which constitutes the income tax imposed on the ordinary income
					 portion (or part thereof) of a lump sum distribution is determined by
					 multiplying the entire income tax payable to the other taxing jurisdiction by a
					 fraction, the numerator of which is the ordinary income portion (or part
					 thereof) of the lump sum distribution included in the income subject to tax by
					 such jurisdiction and the denominator of which is all the income subject to
					 such tax by such jurisdiction. See sections
					 120.1
					 through
					 120.5 
					 of this Part for the resident credit allowable against ordinary tax for the
					 balance of the income tax imposed by such other taxing jurisdiction which does
					 not constitute the income tax imposed on the ordinary income portion (or part
					 thereof) of a lump sum distribution.