Florida Residency How you know you have it, and what you may want to do if another state says you don’t


The income must have been subject to tax by the other state or political subdivision



Download 56.12 Kb.
Page22/35
Date28.02.2021
Size56.12 Kb.
1   ...   18   19   20   21   22   23   24   25   ...   35

The income must have been subject to tax by the other state or political subdivision;

  • The income must have been derived from the other state; and

  • The income must have been subject to tax under Article 22.

    1. In determining whether income was “derived from sources within another state” for purposes of the rule, the definition of New York source income found in Tax Law §631 must be used. Thus, items taxable to a nonresident of New York (i.e., wages, business income, income from real property, etc.) are those for which a resident would be allowed the credit. Those items for which a nonresident would not be taxable (i.e., trust income, dividend income, etc.).

    2. What about “dual residents?” These are individuals who are taxable on all their income, regardless of source, in two states. These taxpayers are subject to an additional limitation. For purposes of the credit, the tax these individuals paid to the “other state” must be prorated by the following formula: (other state income subject to the resident credit ÷ total income taxable by the other state) × total tax due to the other state.




      1. Share with your friends:
  • 1   ...   18   19   20   21   22   23   24   25   ...   35




    The database is protected by copyright ©essaydocs.org 2020
    send message

        Main page