N.Y. Tax Law Section 620
Credit for income tax of another state


(a)

General. A resident shall be allowed a credit against the tax otherwise due under this article for any income tax imposed on such individual 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, upon income both derived therefrom and subject to tax under this article. The term “income tax imposed” in the previous sentence shall not include the portion of such tax (determined in the manner provided for in section six hundred twenty-A) which is imposed upon the ordinary income portion (or part thereof) of a lump sum distribution which is subject to the separate tax imposed by section six hundred three.

(b)

Pass-through entity taxes.

(1)

A resident shall be allowed a credit against the tax otherwise due pursuant to this article for any pass-through entity tax substantially similar to the tax imposed pursuant to article twenty-four-A of this chapter imposed on the income of a partnership or S corporation of which the resident is a partner, member or shareholder for the taxable year by another state of the United States, a political subdivision of such state, or the District of Columbia upon income both derived therefrom and subject to tax under this article.

(2)

Such credit shall be equal to the taxpayer’s direct share of the pass-through entity tax paid by the electing partnership or electing S corporation to such other state, political subdivision of such other state or the District of Columbia.

(3)

However, such credit will be allowed on tax paid only if: (A) the state of the United States, political subdivision of such state, or the District of Columbia imposing such tax also imposes an income tax substantially similar to the tax imposed under this article; and (B) in the case of taxes paid by an S corporation, such S corporation was treated as a New York S corporation.

(c)

Limitations.

(1)

The credit under this section shall not exceed the percentage of the tax otherwise due under this article determined by dividing the portion of the taxpayer’s New York income subject to taxation by such other jurisdiction by the total amount of the taxpayer’s New York income.

(2)

The credit under this section shall not reduce the tax otherwise due under this article to an amount less than would have been due if the income subject to taxation by such other jurisdiction were excluded from the taxpayer’s New York income.

(3)

In the case of a taxpayer who elects to claim the foreign tax credit for federal income tax purposes, the credit under this section for income tax imposed by a province of Canada shall be allowed for that portion of the provincial tax not claimed for federal purposes for the taxable year or a preceding taxable year, provided however, to the extent the provincial tax is claimed for federal purposes for a succeeding taxable year, the credit under this section must be added back in such succeeding taxable year. The provincial tax shall be deemed to be claimed last for federal income tax purposes and for purposes of this subsection.

(d)

Definition. For purposes of this section New York income means:

(1)

the New York adjusted gross income of an individual, or

(2)

the amount of the income of an estate or trust, determined as if the estate or trust were an individual computing his New York adjusted gross income under section six hundred twelve.

Source: Section 620 — Credit for income tax of another state, https://www.­nysenate.­gov/legislation/laws/TAX/620 (updated Apr. 23, 2021; accessed Jul. 13, 2024).

611
New York taxable income of a resident individual
612
New York adjusted gross income of a resident individual
613
New York deduction of a resident individual
614
New York standard deduction of a resident individual
615
New York itemized deduction of a resident individual
616
New York exemptions of a resident individual
617
Resident partners and shareholders of S corporations
617‑A
Residents
618
New York taxable income of a resident estate or trust
619
Share of a resident estate, trust or beneficiary in New York fiduciary adjustment
620
Credit for income tax of another state
620‑A
Credit against separate tax
621
Credits to trust beneficiary receiving accumulation distribution
624
Computation of separate tax on the ordinary income portion of lump sum distributions received by resident individuals, estates and trusts
625
Gift for fish and wildlife management
625‑A
Gifts to food banks
626
The United States Olympic Committee/Lake Placid Olympic Training Center Fund
626‑A
Gift for home delivered meals for seniors
627
Gift for breast cancer research and education
627‑A
Gift for honor and remembrance of veterans
627‑B
Gift for assisting homeless veterans
627‑C
Gift for New York state veterans’ homes
628
Gift for missing and exploited children clearinghouse fund
629
Gift for Alzheimer’s disease support services
629‑A
Gift for eliminating the stigma relating to mental illness
629‑B
Gift for substance use disorder education and recovery
630
Gift for prostate and testicular cancer research and education
630‑A
Gift for World Trade Center memorial foundation
630‑B
Gift for volunteer firefighting and volunteer emergency services fund
630‑C
Gift for New York state teen health education fund
630‑D
Gift for women’s cancers education and prevention
630‑D*2
Gift for autism awareness and research
630‑E
Gift to the love your library fund
630‑F
Gift for organ and tissue donation outreach and research
630‑F*2
Gift for ALS research and education
630‑F*3
Gift for school-based health centers
630‑F*4
Gift for lupus education and prevention
630‑F*5
Gift for military families
630‑F*6
Gift for city university of New York
630‑G
Gift for leukemia, lymphoma and myeloma research, education and treatment
630‑G*2
Gift for the William B
630‑G*3
Gift to the arts fund
630‑H
New York state campaign finance fund check-off
630‑I
Gifts for the state library system
630‑I*2
Gift for the firearm violence research fund
630‑I*3
Gifts for thoroughbred aftercare
630‑J
Gifts for standardbred aftercare
630‑K
Gift for Lyme and tick-borne diseases education, research and prevention
630‑L
Gift for diabetes research and education
630‑L*2
Gift for cure childhood cancer research fund

Accessed:
Jul. 13, 2024

Last modified:
Apr. 23, 2021

§ 620’s source at nysenate​.gov

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