Who is eligible?
You are entitled to claim this nonrefundable credit for the tax year if:
- you were a full-year or part-year resident of New York State, or a New York State-resident estate or trust, or a part-year resident trust; and
- you had income sourced to and taxed by another state, a local government within another state, the District of Columbia, or a Canadian province (this income generally includes wages and business income, and typically excludes interest, dividends, gambling winnings, and lottery winnings).
If your New York adjusted gross income includes any income from an S corporation that’s sourced to and taxed by another jurisdiction and you meet the requirements of the previous two bullets, you can claim this credit.
What if you have dual residency status?
You cannot claim the credit if:
- you are a resident of New York State and another state or Canadian province for income tax purposes, and
- the other jurisdiction allows a credit against its tax for the total resident tax paid to New York State.
Pass-through entity tax
Resident partners, members, or shareholders of flow-through entities may be allowed a New York State resident tax credit for pass-through entity taxes imposed by another state, local government within another state, or the District of Columbia, and paid by the flow-through entity on their behalf. You are entitled to claim this nonrefundable credit if:
- the pass-through entity tax was paid on income sourced to the other state, local government within another state, or the District of Columbia; and
- the pass-through entity tax was paid on income included in your New York adjusted gross income; and
- the pass-through entity tax imposed by the other state, local government within another state, or the District of Columbia is substantially similar to the pass-through entity tax imposed under Article 24-A (for a list of qualifying taxes, see States with a tax substantially similar to PTET).
For more information, see Pass-through entity tax (PTET): Resident tax credit.
- Form IT-112-R, New York State Resident Credit (instructions)
- Form IT-112-C, New York State Resident Credit for Taxes Paid to a Province of Canada (instructions)