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Some taxpayers and tax practitioners are incorrectly reporting pass-through entity tax payments on lines 24a and 24b of Form IT-112-R, New York State Resident Credit. This may result in a taxpayer not receiving proper credit for taxes paid.
On line 24a, include only:
- all income taxes the taxpayer paid to another jurisdiction, and
- any income taxes paid to another jurisdiction on the taxpayer’s behalf, such as through a group or composite return.
On line 24b, include only income taxes the entity paid to another state with a tax substantially similar to New York State’s pass-through entity tax (PTET). Do not include income taxes the entity paid to another jurisdiction on behalf of the taxpayer, such as through a group or composite return, if the taxes are not substantially similar.
For a list of states that impose a pass-through entity tax that is substantially similar to New York State’s PTET, see States with a tax substantially similar to PTET.
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