Where to claim the credit
Claim the credit on the line for the jurisdiction where the tax was paid. Typically, this will be the same locality where you report sales. If you paid tax to a different jurisdiction than where you make sales, claim the credit on the line for the jurisdiction where the tax was paid. You can no longer reduce the amount of your taxable sales or purchases by the amount of your credit.
Note: The "Step 5 - Credits against sales or use tax" box no longer exists. You must claim all credits on the appropriate jurisdiction lines. This allows the Tax Department to accurately distribute the correct amount of tax to the jurisdictions.
How to claim the credit
To claim the credit against taxable sales and services or purchases subject to tax:
- 1. Select the jurisdiction where you are claiming the credit.
- 2. Enter the amount of the receipts on which the tax was paid (not the amount of tax paid) in the "Credits against taxable sales and services" box for that locality.
- 3. Claim a credit against taxable purchases by entering the amount of the receipts in the "Credits against taxable purchases" box. (This is less common.)
- 4. You must explain and substantiate credits. (The Tax Law prohibits the Department from processing credits and refunds unless you submit all documentation and substantiation with the claim. See Required documentation for more information.)
After you complete these steps, Web File will automatically:
- reduce the amount of your taxable receipts by the amount that you entered for the credit, and
- calculate your tax due on the lower amount
If you can't assign credits to a specific jurisdiction, you can't claim the credit on your return. Apply for a refund using Form AU-11, Application for Credit or Refund of Sales or Use Tax and provide substantiating documentation that will allow us to determine the correct jurisdiction.
Taxes paid to another state (reciprocal tax credit)
If you paid tax to another state, you may be entitled to claim a reciprocal credit for tax paid. The reciprocal tax credit isn't automatic. New York State only allows a reciprocal tax credit for specific situations in various states (not every state).
You can't claim a credit for these taxes on your return. You must apply for a refund using Form AU-11. To qualify, the following guidelines must be met:
- the state and/or locality where the purchase was made allows a corresponding credit for sales and use tax paid to New York State
- you were legally liable for the tax and paid it to the other state
- the tax paid to the other state on the purchase is a sales and use tax (for example, not an excise tax)
- you have no right to a refund of the tax paid to the other state, and
- you have proof of payment, such as a receipt showing the amount and rate of tax paid to the other state.
Instructions for specific Sales Tax Web File credit fields
Credit for overpayment of tax being carried forward from a prior period field on the Tax Due Details page
Only use this field if:
- you have an overpayment in a prior period,
- you already filed a credit/refund claim for it (form AU-11 or AU-12), and
- your claim was approved.
Web File will show you the amount of overpayment available from your previous returns. You may claim the entire amount, or a partial amount, but you may not claim more than the amount shown. If you believe you have additional overpayments that are not included in the amount shown, you must file a separate Form AU-11 to substantiate the claim.
Additional payments not shown above field (on the Tax Due details page)
Recent payments may not be posted to your account at the time you file your return. Use this field if you recently made a sales tax payment to the Tax Department and it is not listed in the "Tax Department reported advance payments" field. Do not use this field to claim credits.
Sales Tax Web File support: worksheets & guidance