N.Y. Comp. Codes R. & Regs. tit. 20 § 120.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 120.4 - Definitions

Tax Law, § 620(c)

The following definitions apply for purposes of sections 120.1 -120.3 of this Part:

(a)Total New York income.

(1) In the case of a resident individual, the term total New York income means New York adjusted gross income as determined under section 612 of the Tax Law.

(2) In the case of a resident estate or trust, the term total New York income means the amount of its income determined as if the estate or trust were a resident individual computing New York adjusted gross income under section 612 of the Tax Law.

(b)New York State tax payable.

The term New York State tax payable means the ordinary tax (see section 101.1 of this Title), less any household credit permitted under section 606(b) of the Tax Law.

The term New York State tax payable, for purposes of this Part, does not include any amounts representing interest or penalties.

(c) The term income tax imposed by the other jurisdiction means the total income tax payable thereto for the taxable year, exclusive of the portion of such tax (determined in accordance with the provisions of section 120.6[b] of this Part) which is imposed on the ordinary income portion (or part thereof) of a lump sum distribution, and any interest or penalties. No resident credit is allowable if no tax is actually due to the other jurisdiction. Further, no credit is allowable if another jurisdiction provides for an exemption from its tax on account of the New York State personal income tax of a New York State resident, since the tax imposed by the other jurisdiction is the amount payable after giving effect to such exemption and the credit is reduced if such other jurisdiction provides for a reduction of its tax on such amount.

(d) The term income derived from sources within another state, a political subdivision of another state, the District of Columbia, or a province of Canada, is construed so as to accord with the definition of the term derived from or connected with New York State sources, as set forth in section 631 of the Tax Law in relation to the New York source income of a nonresident individual. Thus, the resident credit against ordinary tax is allowable for income tax imposed by another jurisdiction upon compensation for personal services performed in the other jurisdiction, income from a business, trade or profession carried on in the other jurisdiction, and income from real or tangible personal property situated in the other jurisdiction. Conversely, the resident credit is not allowed for tax imposed by another jurisdiction upon income from intangibles, except where such income is from property employed in a business, trade or profession carried on in the other jurisdiction. Thus, for example, no resident credit is allowable for an income tax of another jurisdiction on dividend income not derived from property employed in a business, trade or profession carried on in such jurisdiction.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 120.4