Accumulation distribution credit
An accumulation distribution occurs when a trust distributes income that it received in a prior year, or years.
If you received an accumulation distribution as a beneficiary of a trust, you may be allowed an accumulation distribution credit for your share of:
- New York State income taxes paid by the trust, and
- any income tax imposed on the trust by another state, political subdivision within that state, or District of Columbia on income sourced to the other jurisdiction.