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 5 - Withholding of New York State Personal Income Tax › Part 173 - Credit For New York State Personal Income Tax Withheld › Section 173.1 - Credit for New York State personal income tax withheld

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 673
(a) The New York State personal income tax
					 deducted and withheld in any calendar year is allowable as a credit against the
					 New York State personal income tax of the person with respect to whom such New
					 York State personal income tax was withheld. Where New York State personal
					 income tax has actually been withheld, such credit for the New York State
					 personal income tax withheld will be so allowed even though the withheld New
					 York State personal income tax has not been paid over to the Division of
					 Taxation.
(b)
Year of
					 credit.
The New York State personal income tax withheld during
						any calendar year will be allowed as a credit against the New York State
						personal income tax imposed under article 22 of the Tax Law for the taxable
						year of such person which begins in that calendar year. Thus, a taxpayer
						reporting on a calendar-year basis receives credit for the New York State
						personal income tax withheld during such taxpayer's entire reporting year. A
						taxpayer filing on a fiscal-year basis is allowed credit against such
						taxpayer's New York State personal income tax for the New York State personal
						income tax withheld in the calendar year during which such fiscal year
						began.
Example:
A files on a fiscal-year basis beginning June 1, 1985 and
						ending May 31, 1986. The full amount of New York State personal income tax
						withheld during the calendar year 1985 must be claimed as a credit on such
						fiscal-year New York State personal income tax return, and it may not be
						prorated to reflect the portion withheld from June 1, 1985 to December 31,
						1985. The
Wage and Tax Statement
(form IT-2102) for 1985 must
						be attached to the New York State personal income tax return filed for such
						fiscal year ending May 31, 1986.
(c)
Credit on New York State personal
					 income tax return for less than a full taxable year.
If the person from whom the New York State personal
						income tax was withheld has more than one taxable year beginning in a calendar
						year, the full amount of the New York State personal income tax withheld during
						that calendar year will be credited against the New York State personal income
						tax for the last taxable year beginning in such calendar year.
Example:
B files his New York State personal income tax returns on
						a calendar-year basis. He is permitted to change to a fiscal-year basis and his
						first New York State personal income tax return on this basis is for the fiscal
						year beginning July 1, 1977 and ending June 30, 1978. He also files the
						required short period New York State personal income tax return for the period
						January 1, 1977 to June 30, 1977. The credit for the New York State personal
						income tax withheld for the calendar year 1977 will be applied against the New
						York State personal income tax for the fiscal year July 1, 1977 to June 30,
						1978, since such fiscal year is the last taxable year beginning in the calendar
						year 1977. Thus, no credit with respect to the New York State personal income
						tax withheld during the calendar year 1977 may be applied to the New York State
						personal income tax for the short-period New York State personal income tax
						return, January 1, 1977 to June 30, 1977.