State Tax return(s) for property sold out of state

[hardyr8304]

Resident of  NY.   Sold property in Mass.   Completed the non-resident MASS return showing just the Capital Gain on the property as income.   No issues here.

Then, completed the my RESIDENT NY State return.   I'm getting taxed on 100% of my capital gains from my Federal Schedule D, including the Mass property, that I was taxed on already.

How do I get credit for the taxes I paid to Massachussetts on my NY Resident tax return

[ColeenD3]

NY does give you a credit for taxes paid to another state. See who is eligible below.

Resident Credit

Who is eligible? 

You are entitled to claim this nonrefundable credit for the tax year if:

Please see this LINK for more information.

• you were a full-year or part-year resident of New York State, or a New York State resident estate or trust, or a part-year resident trust; and
• you had income sourced to and taxed by another state, a local government within another state, the District of Columbia, or a Canadian province (this income generally includes wages and business income, and typically excludes interest, dividends, gambling winnings, and lottery winnings).

[hardyr8304]

Coleenn,

Thank you fro your response and I came to the same conclusion...   My issue is I can seem to get Turbo Tax to recognize the payment I made to the MA.   I'm struggling with what I'm doing wrong......Any advice would be welcomed

[Critter-3]

The NY program should have included the non res Mass taxes paid in the tax calculations ... review the returns carefully.   If they did not carry the "taxes paid to other states" amount correctly then you will need to enter it yourself in the NY interview screens when asked.  

[hardyr8304]

I was able to enter the information to get a credit on my NY State tax return....

But what I don't understand is if I paid MA $500 in taxes on the sale of this property...... I was thinking I would get a credit of $500 on my NY state taxes.    But I'm only getting $323 credit.      

[RaifH · Accepted solution]

The credit is the lesser of the actual taxes paid to your nonresident state or the amount of taxes your resident state charges you on the same income. 

The calculation of the credit is on Form IT-112-R. Although NY's income tax is usually higher than MA's, when the entire calculation is done with all your forms of NY income and deductions considered, the tax charged would have been less than what MA charged.

[hardyr8304]

Thank you!......  While I don't like the answer, I'll move on!

Very much appreciate your help!

Regards,

Rich