New York Advisory Opinion TSB-A-82(3)I: Can a taxpayer who is a resident of both New York and the District of Columbia claim a New York resident credit for District of Columbia income tax paid on D.C.-source income for the 1979 tax year?

Plain-English summary

Wesley A. Brown maintained addresses in both West Hempstead, New York, and Washington, D.C., and during the 1979 taxable year was, at the same time, a resident of New York within the meaning of Tax Law § 605 and a resident of the District of Columbia within the meaning of D.C. Code § 47-1551c(q). He received income attributable to the District of Columbia during that year, which was subject to both New York's Personal Income Tax under Article 22 and the District's Income and Franchise Taxes under Chapter 15 of Title 47 of the D.C. Code. He asked whether he could claim a credit on his New York return for the D.C. tax paid.

The Department confirmed he could. Tax Law § 620 provides a credit against a resident's New York personal income tax for income tax paid for the taxable year to another state, a political subdivision of a state, or the District of Columbia, on income that's both derived from that other jurisdiction and also subject to New York tax. Because Brown satisfied both residency definitions simultaneously and his D.C.-source income was taxed by both jurisdictions, he qualified for the section 620 credit, subject to the amount limitations set out in section 620(b).

The Department added an important caveat: this conclusion is specific to calendar year 1979. It noted that a different conclusion could apply to earlier years, depending on the nature of the District of Columbia's own statutory tax provisions that were in effect during those prior years - meaning the availability of the credit isn't a fixed, timeless rule but depends on the specific D.C. law in force for the particular year in question.

What this means for you

Taxpayers who are residents of both New York and the District of Columbia

You can generally claim New York's section 620 resident credit for D.C. income tax paid on D.C.-source income that both jurisdictions tax - but don't assume the same answer automatically applies to every past or future year, since the credit's availability can depend on the specific D.C. tax provisions in effect for that particular year.

Taxpayers relying on a prior year's favorable credit determination for a different tax year

Check whether the underlying D.C. (or other jurisdiction's) tax statute has changed between the year at issue in a prior ruling and your own tax year - this opinion explicitly flags that its 1979 conclusion might not extend to earlier years due to differences in D.C. statutory law.

Accountants preparing returns for dual-residency clients with D.C. income

Verify the specific D.C. Code provisions in effect for the tax year you're preparing before assuming a resident credit is available - the Department's own opinion here declined to generalize its conclusion beyond the single tax year presented.

Common questions

Q: I'm a dual resident of New York and the District of Columbia - can I get a New York credit for D.C. income tax I paid?
A: Generally yes, for income that's both D.C.-source and subject to New York tax, under Tax Law § 620 - but the credit is subject to the limitations in section 620(b), and you should confirm the D.C. statutory provisions applicable to your specific tax year.

Q: Does this credit rule apply the same way to every past tax year?
A: Not necessarily. The Department specifically noted this 1979 conclusion might not extend to earlier years, since it depends on the District of Columbia's own tax statutes in effect for that particular year.

Q: Does New York's section 620 credit apply to taxes paid to jurisdictions other than the District of Columbia?
A: Yes - section 620 more broadly covers income tax paid to another state or a political subdivision of a state, in addition to the District of Columbia, subject to the same source and taxability requirements.

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/income_ao_1982.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/income/a82_3i.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-82 (3) I
Income Tax
May 5, 1982

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. I820330A

On March 30, 1982, a Petition for Advisory Opinion was received from Wesley A. Brown,
473 Nassau Boulevard, West Hempstead, New York 11552 and 3440 Brown St. N W, Washington,
D.C. 20010.
The issue raised is whether Petitioner, a New York resident, is entitled to a credit on his New
York State income tax return for income tax imposed by the District of Columbia, with respect to
the taxable year 1979.
Section 620 of the Tax Law, contained in Article 22 thereof, provides for a credit against the
New York personal income tax of a resident taxpayer for any income tax imposed for the taxable
year by another state, a political subdivision of such state or by the District of Columbia upon
income both derived therefrom and subject to the New York personal income tax.
Petitioner indicates that during the taxable year I979 he was a resident of New York, within
the meaning of section 605 of the Tax Law, and a resident of the District of Columbia, within the
meaning of D.C. Code, § 47-1551c(q). During that year Petitioner received income attributable to
the District of Columbia. Such income was subject to both the Personal Income Tax imposed under
Article 22 of the Tax Law and the Income and Franchise Taxes imposed under Chapter 15 of Title
47 of the District of Columbia Code.
Pursuant to the provisions of section 620 of the Tax Law Petitioner is entitled to a credit for
the tax imposed by the District of Columbia on the income described above. The amount of the
credit is subject to certain limitations, set forth in subsection (b) of section 620 of the Tax Law.
The foregoing is applicable to calendar 1979, the year at issue herein. It is to be noted that
a different conclusion would apply with respect to prior years, based on the nature of the District of
Columbia statutory provisions applicable to such years.

DATED: May 5, 1982

JAMES H. TULLY., COMMISSIONER
TP-8 (4/80)

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau

LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR