IT-112.1: New York State Resident Credit Against Separate Tax on Lump-Sum Distributions (2025)
New York · NY DTF · Used for tax years 2025
Form IT-112.1 is used to claim a New York State resident credit against the separate tax on lump-sum distributions. It reports tax imposed by another qualifying jurisdiction on the ordinary income part of a lump-sum distribution and calculates the allowable credit.
Who files this form
Use Form IT-112.1 to claim this credit if you are a New York State full-year or part-year resident, a New York State resident estate or trust, or a part-year resident trust.
The credit is against New York State separate tax on lump-sum distributions. It 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.
If you elect the capital gain method in 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.
What you'll need
- Your New York return, Form IT-201, IT-203, or IT-205, including the name and identifying number shown on it.
- Form IT-230, Separate Tax on Lump-Sum Distributions, for the amounts used to calculate the credit.
- A copy of federal Form 4972, which must be submitted with Form IT-112.1.
- The other jurisdiction’s name and the tax amounts needed for the calculation. If it does not impose a separate tax on the distribution, the form also requires total income subject to its tax and total tax payable after credits, excluding prepayments.
- For a Canadian provincial credit, federal Form 1116. Use the relevant amount from Part II, line 8, and submit a copy with your return.
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 applicable calculation. On the front, enter the smaller of line 2 or line 3 on line 4. On the back, enter the smaller of line 8 or line 9 on line 10.
- Individuals: report the credit on Form IT-201-ATT, line 27, or Form IT-203-ATT, line 26. Fiduciaries: subtract the credit from the separate tax calculated 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 a Canadian provincial credit, also submit a copy of federal Form 1116.
The form does not provide a mailing address or e-filing instructions.
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 and, if you owe taxes, could result in late filing penalties.
- Missing a later Canadian tax credit adjustment. If any portion of the Canadian provincial income tax that qualified you for a New York credit is claimed as a federal foreign tax credit in a later tax year, the amount claimed here as a New York credit must be added back to your New York State tax liability for that later year.
Questions people ask
Can I include tax on the capital gain part of a distribution?
Lines 2 and 6 include tax on the capital gain part you elected to treat as ordinary income. If you instead elect the capital gain method in Part 2 of Form IT-230, use Form IT-112-R or IT-112-C to compute the credit on that part.
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.
How does a federal credit affect the Canadian provincial credit?
Enter the relevant separate-tax amount from federal Form 1116, Part II, line 8, on line 7. Subtract it from line 6 to find the portion not claimed as a federal credit. Enter Canadian provincial tax on line 6 in U.S. dollars.
Is the New York credit limited?
Yes. For another state or the District of Columbia, claim the smaller of lines 2 and 3. For a Canadian province, claim the smaller of lines 8 and 9. The credit also cannot reduce New York’s separate tax below the amount that would be due if the ordinary income part taxed by both jurisdictions were excluded from that tax.