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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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How to claim tax credit for capital gains tax paid to Korean

Customer Question

How to claim tax credit for capital gains tax paid to Korean gov't against the ny state income tax by Korean us citizen?
Submitted: 3 months ago.
Category: Tax
Expert:  Lane replied 3 months ago.

Hi,

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Some states have what's called a credit paid to other Jurisdictions (such a s New Jersey) but NY (and most other states) simply provide a credit for taxes paid to another state.

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Heres' what NY says: "If 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, or the District of Columbia, you may claim a credit against your New York State tax. "

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And there IS a credit (filed on a different form) for tax paid to Canada... See this: " Do not use Form IT-112-R to claim the resident credit for taxes paid to a Canadian province. Instead, you must claim the resident credit (and addback) for taxes paid to a Canadian province on Form IT-112-C"

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If you'll bear with me, let me see if the is a separate credit for taxes pid to a foreign government... many states do not ... just a sec

Expert:  Lane replied 3 months ago.

Ahhh, here we go, To deduct foreign income tax residents must use form IT-201, the long form.

Expert:  Lane replied 3 months ago.

here's some anecdotal evidence: http://www.ehow.com/info_12134649_new-york-state-foreign-income-tax-credit.html

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I'm still looking for it on the form

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Please bear with me

Customer: replied 3 months ago.
Do I have to pay an additional $52 to continue the discussion over the phone? What you have responded to my question is what I knew already! There is nothing new>
Expert:  Lane replied 3 months ago.

First, I did not make a phone offer ... If you are seeing one, this was done by JustAnswer.com.

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Wd expert users are users just as you are and do not know what money has been paid.... we are only credited with a PORTION of what you pay JustAnswer when you rate positively

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I'm struggling with knwoing what elsse there is to say here other than to use the long form and take the credit.

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Have I understood your question correctly? I'll be glad to go further in any way that I can.

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Lane

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I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Please let me knoow what mmoe I can do for you.

Expert:  Lane replied 3 months ago.

By the way, in the event that I wan't clear before, despite the fact that the foreign income tax paid is a tax, you cannot deduct it from the taxes that you owe the state of New York.

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The way NY handles this is as an itemized deduction that decreases your adjusted gross income. Since you subtract it from income you received, it effectively reduces your total New York State tax liability.

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