The credit for taxes paid to another state is a nonrefundable credit that is automatically calculated in your account when you add a Nonresident return to your already created Resident New York return if you pay taxes to both New York and another state.
NOTE: If you have a dual residency for New York State and another state or Canadian province for income tax purposes, you cannot claim a credit if the other jurisdiction allows a credit against its tax for the total resident tax paid to New York.
- Must be a full-year or part-year resident of New York, a New York State full or part-year resident trust or estate
- Must have income that was sourced and taxed to another state, a local government from another state, the District of Columbia or Canada
- A shareholder of an S corporation and pay tax calculated on the S corporation income
If you have a part-year residency for New York, you will need to manually add information to the account to add this credit.
How to manually add New York State Resident Credit
If you need to manually enter the credit please follow the steps below
- Click State on the left side menu
- Click the three dots to the right of New York part-year and select "Edit"
- Click "Begin" or "Edit" on Credits
- Click "Begin" on Credit for taxes paid to another state
- Click the + Add Credit under Other State Credit
- Add the information requested.
New York may request a copy of the other state's tax return before processing the return. Please see the New York tax website here.