IT-112.1: New York State Resident Credit Against Separate Tax on Lump-Sum Distributions (2024)
New York · NY DTF · Used for tax years 2024
Form IT-112.1 calculates a New York State resident credit against the separate tax on lump-sum distributions. It reports tax imposed by another state, a local government in that state, the District of Columbia, or a Canadian province on the ordinary income part of a lump-sum dist
Who files this form
Use Form IT-112.1 to claim a credit against New York State separate tax on lump-sum distributions if you are a:
- New York State full-year or part-year resident;
- New York State resident estate or trust; or
- Part-year resident trust.
The credit covers income tax imposed by another state, a political subdivision of that state, the District of Columbia, or a Canadian province on the ordinary income part of a lump-sum distribution derived from a business, trade, profession, or occupation carried on in that jurisdiction.
What you'll need
Have these forms and figures available:
- Federal Form 4972: Submit a copy with Form IT-112.1 and your New York return.
- Form IT-230, Separate Tax on Lump-Sum Distributions: The credit calculation uses amounts from lines 3 and 24.
- Tax figures for the other jurisdiction: You need its name and the tax imposed on the ordinary income part of the distribution. If that jurisdiction includes the distribution in its regular income tax instead of imposing a separate tax, the calculation also uses total income subject to tax and total tax payable there.
- Your New York return: Form IT-201, IT-203, or IT-205. Individuals report the credit on Form IT-201-ATT or IT-203-ATT.
- Federal Form 1116, if claiming credit for Canadian provincial tax: Use the relevant amount from Part II, line 8, and submit a copy.
How to file
- Enter your name and identifying number as shown on your return.
- Use the front of Form IT-112.1 for tax imposed by another state, its political subdivision, or the District of Columbia. Use the back for tax paid to a Canadian province.
- Complete the credit calculation. For the front, enter the smaller of lines 2 and 3 on line 4. For the back, enter the smaller of lines 8 and 9 on line 10.
- Individuals: Enter the credit on Form IT-201-ATT, line 27, or Form IT-203-ATT, line 26. Fiduciaries: Subtract the credit from the separate tax computed on Form IT-230 and include the net amount on Form IT-205, line 12.
- Submit Form IT-112.1 and a copy of federal Form 4972 with Form IT-201, IT-203, or IT-205. For Canadian provincial tax, also submit a copy of federal Form 1116.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out required attachments: The form warns that failing to submit Form IT-112.1 and the required federal form copies will delay any refund or, if you owe taxes, could result in late filing penalties.
- Overlooking a later-year Canadian tax adjustment: If you claim any portion of the Canadian provincial income tax that entitled you to this New York credit as a federal foreign tax credit in a succeeding tax year, the amount claimed here as a New York credit must be added back to your New York tax liability for that succeeding year.
Questions people ask
Can I use this form for the capital gain part of my distribution?
If you elect the capital gain method on Part 2 of Form IT-230, use Form IT-112-R or IT-112-C to compute the resident credit on the capital gain part. Form IT-112.1 includes tax on capital gains that you elected to treat as ordinary income.
What if the other jurisdiction does not impose a separate tax on lump-sum distributions?
If it includes the ordinary income part in income subject to its income tax, use the formula printed on Form IT-112.1 to determine the amount for line 2 or line 6.
Do I subtract withholding or estimated tax payments when entering the other jurisdiction's tax?
No. For lines 2 and 6, use the separate tax required to be paid after subtracting credits against that tax, but do not subtract prepayments made through withholding or estimated tax.
How is Canadian provincial tax treated?
Enter the tax in U.S. dollars on line 6. Line 7 uses the relevant amount from federal Form 1116, Part II, line 8. Subtract line 7 from line 6 to find the portion not claimed as a federal credit, then apply the New York credit limit.