Form IT-112.1: Resident Credit Against Separate Tax on Lump-Sum Distributions (2026)
Last reviewed: 2025-10-28
Use the New York Tax Form Calculator Form IT-112.1 — New York State Resident Credit Against Separate Tax on Lump-Sum Distributions as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form IT-112.1 is used by New York residents (including resident estates and trusts) to claim a credit when another taxing authority imposes a separate tax on the ordinary-income portion of a lump-sum distribution that is also subject to New York tax. The credit prevents double taxation of the same ordinary-income portion; it does not apply to amounts that are not subject to the other jurisdiction’s separate tax.
Complete IT-112.1 for each jurisdiction that imposed a qualifying separate tax and attach it to your New York return. Coordinate results with your main return (typically IT-201) and any related schedules (for example, IT-225 for modifications).
- Who files: Full-year or part-year NY residents, and resident estates or trusts, when another state, the District of Columbia, or a Canadian province imposes a separate tax on the ordinary-income portion of a lump-sum distribution that is also taxed by NY.
- Scope: The credit is limited to the ordinary-income portion of the lump-sum distribution that the other jurisdiction taxes under a separate tax regime. Capital gain portions elected as ordinary income follow the form’s instructions.
- Separate forms: File a distinct IT-112.1 for each jurisdiction. Keep assessment notices and computations from the other jurisdiction.
- USD reporting: If paid in foreign currency (e.g., Canadian dollars), convert to USD using a consistent annual average or transaction-date method and retain support.
- Addback rule: If you later claim a federal foreign tax credit on the same tax, you must add that amount back to NY tax in that later year.
| New York State full-year or part-year residents, New York State resident estates or trusts, and part-year resident trusts should use this form to claim a credit against the New York State separate tax on lump-sum distributions for any income tax imposed by another state, a political subdivision of that state, the District of Columbia, or a province of Canada on the ordinary income part of a lump-sum distribution derived from a business, trade, profession, or occupation carried on within that other jurisdiction. | ||||||||||
| If you elect the capital gain method of reporting the lump-sum distribution on Part 2 of Form IT-230, Separate Tax on Lump-Sum Distributions, use Form IT-112-R, New York State Resident Credit, or Form IT-112-C, New York State Resident Credit for Taxes Paid to a Province of Canada, to compute the resident credit on the capital gain part. | ||||||||||
| Compute the credit for income tax imposed by another state, political subdivision of that state, or the District of Columbia on the front of this form. If you claim credit for income taxes paid to a province of Canada, use the back of this form. | ||||||||||
| 1 | Enter the name of the state, local government (including state in which located), or District of Columbia to which tax on the ordinary income part of lump-sum distributions was payable: | |||||||||
| 2 | 2 | |||||||||
| The amount to be entered above is the amount of separate tax on the ordinary income part of lump-sum distributions required to be paid after subtracting any credit against the separate tax (other than prepayments made through withholding or estimated tax). | ||||||||||
| If the ordinary income part of a lump-sum distribution is not subject to a separate tax by the above jurisdiction but is included as income under an income tax imposed by the above jurisdiction, determine the amount to be entered above using the following formula: | ||||||||||
| Amount from federal Form 4972, line 8 that is subject to tax by the above jurisdiction $ | / | Total income subject to tax by the above jurisdiction $ | X | Total tax payable to the above jurisdiction (after any credits, exclusive of prepayments) $ | = | Amount constituting a separate tax on the ordinary income part of lump-sum distributions imposed by the above jurisdiction (enter on line 2) | ||||
| 3 | The credit against New York State separate tax on lump-sum distributions may not exceed: | |||||||||
| (a) | Amount from Form IT-230, line 3 that is subject to tax by both New York State and the other taxing jurisdiction $ | / | Amount from Form IT-230, line 3 $ | X | New York State amount from Form IT-230, line 24 $ | = | Credit allowable | 3 | ||
| (b) | The credit allowed may not reduce the New York State separate tax on the ordinary income part of lump-sum distributions to an amount less than would be due if the ordinary income part of a lump-sum distribution, subject to tax by both New York State (Tax Law section 603) and by the above jurisdiction, were excluded from New York State separate tax on lump-sum distributions. | |||||||||
| 4 | 4 | |||||||||
| Individuals: Enter the line 4 amount on Form IT-201-ATT, line 27, or Form IT-203-ATT, line 26. Fiduciaries: Subtract the line 4 amount from the separate tax on lump-sum distributions computed on Form IT-230, and include the net amount on Form IT-205, line 12 | ||||||||||
| Submit this form and a copy of federal Form 4972 with Form IT-201, IT-203, or IT-205. Failure to do so will delay any refund to which you may be entitled or, if you owe taxes, could result in late filing penalties. | ||||||||||
| Figuring your resident credit against separate tax on lump-sum distributions paid to a province of Canada | ||||||||||
| 5 | Enter the name of the province of Canada where tax was paid: | |||||||||
| 6 | 6 | |||||||||
| The amount to be entered is the amount of separate tax on the ordinary income part of lump-sum distributions required to be paid after subtracting any credit against the separate tax (other than prepayments made through withholding or estimated tax). | ||||||||||
| If the ordinary income part of a lump-sum distribution is not subject to a separate tax by a Canadian province but is included as income under an income tax imposed by the province, determine the amount to be entered above using the following formula: | ||||||||||
| Amount from federal Form 4972, line 8 that is subject to tax by the above Canadian province $ | / | Total income subject to tax by the above Canadian province $ | X | Total tax payable to the above Canadian province (after any credits, exclusive of prepayments) $ | = | Amount constituting a separate tax on the ordinary income part of lump-sum distributions imposed by the above jurisdiction (enter on line 2) | ||||
| 7 | 7 | |||||||||
| 8 | 8 | |||||||||
| 9 | The credit against New York State separate tax on lump-sum distributions may not exceed: | |||||||||
| (a) | Amount from Form IT-230, line 3 that is subject to tax by both New York State and the above Canadian province $ | / | Amount from Form IT-230, line 3 $ | X | New York State amount from Form IT-230, line 24 $ | = | Credit allowable | 9 | ||
| (b) | The credit allowed may not reduce the New York State separate tax on the ordinary income part of lump-sum distributions to an amount less than would be due if the ordinary income part of a lump-sum distribution, subject to tax by both New York State (Tax Law section 603) and by the Canadian province, were excluded from New York State separate tax on lump-sum distributions. | |||||||||
| 10 | 10 | |||||||||
| Individuals: Enter the line 10 amount on Form IT-201-ATT, line 27, or Form IT-203-ATT, line 26. | ||||||||||
| Fiduciaries: Subtract the line 10 amount from the separate tax on lump-sum distributions computed on Form IT-230, and include the net amount on Form IT-205, line 12. | ||||||||||
| If any portion of the Canadian provincial income tax that entitled you to a New York State credit is claimed as a foreign tax credit on your federal return in a succeeding tax year, the amount claimed here as a credit against New York State tax due must be added back to your New York State tax liability for that succeeding tax year. | ||||||||||
| Submit this form, a copy of federal Form 1116, and a copy of federal Form 4972 with Form IT-201, IT-203, or IT-205. Failure to do so will delay any refund to which you may be entitled or, if you owe taxes, could result in late filing penalties. | ||||||||||
What the credit covers
IT-112.1 addresses a narrow scenario: the other jurisdiction imposes a separate tax specifically on the ordinary-income portion of a lump-sum distribution. New York taxes that income as part of your return, so without this credit you would pay tax twice. The form aligns New York liability with the other jurisdiction’s separate-tax treatment and allows a credit up to the applicable NY limit.
How the credit is limited: The allowable credit is generally the lesser of (1) the other jurisdiction’s separate tax on the ordinary-income portion (after any local credits, excluding mere prepayments), or (2) the portion of your New York tax attributable to the same ordinary-income portion. This prevents the credit from exceeding New York’s own tax on that income.
Data you will need: A calculation or notice from the other jurisdiction showing its separate-tax base and tax on the ordinary-income portion; your NY computation showing how the ordinary-income portion is included in NY taxable income; and exchange-rate schedules if amounts were paid in a foreign currency. If federal Form 4972 is involved, follow the ordinary-income portion coordination reflected on the form’s lines.
Worked example: Suppose Jurisdiction A assessed a separate tax of $2,100 on the ordinary-income portion of your lump-sum distribution. Your NY computation shows that the NY tax attributable to that same ordinary-income portion is $1,850. Your allowable NY credit on IT-112.1 is $1,850 (the lesser of the two). If in the following year you claim $400 of that Jurisdiction A tax as a federal foreign tax credit on Form 1116, you must add back $400 to your NY tax in that following year.
Choosing the correct credit form: IT-112.1 is only for separate-tax-on-lump-sum scenarios. For general resident credit on non-lump-sum income taxed by another U.S. state/DC, use IT-112-R. For Canadian provincial regular income tax (not a separate tax), use IT-112-C. Review your facts carefully to avoid duplicating or misplacing credits.
Filing and cross-references: Individuals typically attach IT-112.1 to IT-201. If New York’s separate tax on lump-sum distributions is computed elsewhere (historically via IT-230 or instructions embedded in the return package), reconcile those figures so the ordinary-income portion aligns across filings. Keep all notices and proofs of payment from the other jurisdiction to substantiate the credit.
Last reviewed: 2025-10-28: If you believe this form requires an update, please contact us.
Planning and audit-readiness
Model both sides before filing: compute the other jurisdiction’s separate tax and New York’s tax on the same ordinary-income portion to estimate the binding limitation. When foreign currency is involved, adopt a consistent exchange-rate method and document it. If you anticipate a later federal foreign tax credit claim on the same tax, forecast the New York addback impact to avoid surprises.
Coordination tips: If the other jurisdiction taxes only a subset of the distribution, ensure your New York attribution matches that subset. Keep line-by-line tie-outs that map the ordinary-income portion from the other jurisdiction’s assessment to the NY computation. For non-lump-sum cross-border income, prefer IT-112-R (U.S./DC/foreign non-separate taxes) or IT-112-C (Canadian provincial regular income tax).
When in doubt: Read the current IT-112.1 fill-in PDF and the NY DTF credit pages to confirm that your situation meets the separate-tax test and that you are not double-claiming the same tax across forms or years.
Quick Access Tools
Frequently Asked Questions
Does IT-203-ATT replace IT-112-R or IT-112-C?
No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.
How much income can be excluded on IT-221?
You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.
Can part-owners of a property claim IT-119?
Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.
Can I use IT-203-B to claim the NY College Tuition Deduction?
Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.
Are HSA contributions deductible for New York tax?
No—unlike the federal system, New York does not allow an HSA deduction.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.