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 120.2 - Limitations

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 620(b)
The amount of the credit against ordinary tax for income
						tax imposed by another jurisdiction is subject to the limitations provided in
						this section. Where credit is claimed against ordinary tax for income taxes
						imposed by two or more taxing jurisdictions, as defined in section
						120.1(b)(2) 
						of this Part, these limitations must be applied separately to each jurisdiction
						for each credit being claimed. See section
						120.3 
						of this Part for the limitations in cases where such credit is claimed for
						income taxes imposed by both a state and one or more of its political
						subdivisions.
(a) The credit for the
					 taxable year cannot exceed the income tax payable to the other jurisdiction.
					 When both a state (other than New York State) and one or more of its political
					 subdivisions impose income taxes on the same or different amounts of income
					 derived from sources within such state as defined in section
					 120.4(d) 
					 of this Part, see section
					 120.3 
					 of this Part. If a taxpayer on his or her New York State personal income tax
					 return claims a credit pursuant to this Part for the income tax or taxes (or
					 any portion thereof) of another jurisdiction, and it is later determined that
					 the amount of such tax or taxes (or the portion for which credit was claimed)
					 is more or less than the amount of credit claimed with respect to such tax or
					 taxes on the taxpayer's New York State personal income tax return, he or she
					 must file an amended New York State personal income tax return at the address
					 indicated on the form and in the instructions.
(b) The credit for the taxable year cannot
					 exceed the amount obtained by multiplying the New York State tax payable (see
					 section
					 120.4[b] 
					 of this Part) by a percentage determined by dividing the portion of the
					 taxpayer's New York income subject to taxation in such other jurisdiction (the
					 numerator) by the taxpayer's total New York income (the denominator).
(c) The credit for the taxable year cannot
					 reduce the New York State tax payable to an amount less than would have been
					 due if the income subject to taxation by the other jurisdiction was excluded
					 from the taxpayer's New York income.
(d) When a taxpayer elects to claim the
					 foreign tax credit for Federal income tax purposes, the resident credit for
					 income tax imposed by a province of Canada will be allowed for the portion of
					 the Canadian provincial tax that is not claimed for Federal income tax purposes
					 for the taxable year or a preceding taxable year. If any amount of such portion
					 of the Canadian provincial tax is claimed for Federal purposes in a succeeding
					 taxable year, the amount claimed must be added back for New York State purposes
					 in such succeeding taxable year. The Canadian provincial tax will be treated as
					 being claimed last for Federal income tax purposes and for purposes of this
					 subdivision.