If you itemized deductions on your federal return, those deductions generally carry over to your New York return automatically. However, New York tax law doesn't always follow federal rules. In some cases, you'll need to adjust your deductions by adding, subtracting, or modifying certain amounts.
Path to this entry:
New York State Return > Itemized Deductions
What Is Included in the New York Itemized Deductions Section?
The New York Itemized Deductions section allows you to:
- Enter additions to federal itemized deductions
- Enter subtractions from federal itemized deductions
- Report certain repayment deductions
- Enter qualified cash contributions
- Report contributions to the New York Charitable Gifts Trust Fund
- Adjust mortgage interest deductions
- Enter other itemized deductions from partnerships
The program will automatically compare your allowable New York itemized deductions to your New York standard deduction and use whichever provides the greater tax benefit.
Additions to Federal Itemized Deductions
Select Additions to Federal Itemize Deductions to enter amounts that must be added back when calculating your New York itemized deductions.
Path to this entry:
New York State Return > Itemized Deductions > Additions to Federal Itemized Deductions
Only enter additions that qualify under New York law.
Keep supporting documentation with your tax records in case New York requests verification.
Subtractions From Federal Itemized Deductions
Select Subtractions From Federal Itemized Deductions to enter amounts that were allowed as federal itemized deductions but must be reduced or removed for New York purposes.
Path to this entry:
New York State Return > Itemized Deductions > Subtractions From Federal Itemized Deductions
Only enter deductions that require a New York adjustment.
Documentation supporting the adjustment should be retained with your tax records.
Deduction for Repayment of Amounts Under a Claim of Right of $3,000 or Less
You may qualify for a deduction if:
- The income was reported in a prior year
- You repaid the income during the current tax year
- The repayment amount was $3,000 or less
This situation commonly occurs when income you previously received must later be returned to the payer.
Keep records showing:
- The amount repaid
- The year the income was originally reported
- Documentation supporting the repayment
Qualified Cash Contributions
Enter any qualifying charitable cash contributions eligible for a New York itemized deduction adjustment.
Only include contributions that meet New York's requirements.
You should keep:
- Contribution receipts
- Charity acknowledgment letters
- Any other documents supporting the contribution
Contributions to the New York Charitable Gifts Trust Fund
Enter qualifying contributions made to the New York Charitable Gifts Trust Fund during the tax year.
These contributions may affect the calculation of your New York itemized deductions and, for New York City residents, may also affect certain New York City tax calculations.
Be sure to retain documentation of all contributions.
Adjustment to the Mortgage Interest Deduction
Mortgage interest reported on your federal Schedule A is generally transferred automatically to your New York return.
Path to this entry:
New York State Return > Itemized Deductions > Adjustment to Mortgage Interest Deduction
If a New York adjustment is required, enter the adjustment amount in this section.
When Might an Adjustment Be Needed?
Examples include:
- New York-specific mortgage interest limitations
- Corrections to transferred mortgage interest amounts
- Other circumstances that require a New York adjustment
Only enter an adjustment if the federal mortgage interest deduction must be modified for New York purposes.
Other Itemized Deductions From Partnerships
If you received itemized deduction information from a partnership, enter those amounts in this section.
These amounts are generally provided on:
- Schedule K-1
- Partnership statements
- Other supporting partnership documentation
Only enter amounts specifically identified as New York itemized deductions.
Standard Deduction vs. Itemized Deductions
You do not need to calculate which deduction method is better.
After all information has been entered, the program automatically compares:
- Your allowable New York standard deduction, and
- Your allowable New York itemized deductions
The larger deduction is applied to your return for the greatest potential tax benefit. New York allows taxpayers to use either the standard deduction or itemized deductions and generally benefits from whichever produces the larger deduction.
How Do These Adjustments Affect My Return?
Itemized deduction adjustments may:
- Increase New York itemized deductions
- Decrease New York itemized deductions
- Reduce New York taxable income
- Increase your refund
- Reduce the amount of tax you owe
The overall effect depends on the type of adjustment and your individual tax situation.
Important Information
- Federal itemized deductions generally transfer automatically from your federal return.
- Some federal deductions require adjustments under New York law.
- Keep records supporting all additions, subtractions, and deduction adjustments.
- Mortgage interest is generally transferred automatically from federal Schedule A.
- Partnership deductions should be entered exactly as provided by the partnership.
- If you choose to itemize, New York may require additional supporting forms.
- The program automatically selects the deduction method that provides the greater tax benefit.
Additional Information
Before completing the Itemized Deductions section, review your federal Schedule A, Forms 1098, Schedule K-1s, charitable contribution records, repayment documentation, and any other New York-specific tax records.
Taking a few minutes to verify your deductions can help ensure your New York return is accurate and that you're receiving every deduction you're entitled to claim.
For additional information, review the Form IT-196 instructions below: