If you Itemized your Federal Deductions, these amounts have already been carried to your New York Return; however, you may need to add or subtract certain items listed below.
Additions to Itemized Deductions
Interest Expenses on Income Subject to NY Tax
Interest expense on money borrowed to purchase securities/bonds and the interest is subject to New York income tax, but exempt from federal income tax, if this interest expense was not subtracted on your federal return or shown as a New York subtraction.
Interest Expense on Money Borrowed on Exempt Interest
Interest expense on money borrowed to purchase or carry bonds or securities whose interest is exempt from New York income tax, but only to the extent included in total federal itemized deductions.
Amortization Interest Income Subject to NY Tax
Amortization of bond premium attributable to current tax year on any bond whose interest income is subject to New York income tax, but exempt from federal income tax, if this amortization was not deducted on your federal return or shown as a New York subtraction.
Subtractions from Federal Itemized Deductions
Additional State, Local and Foreign Taxes
State, local, and foreign income taxes (or general sales tax, if applicable) from federal Schedule A.
Long-Term Care Premiums Included on Federal Schedule A, Line 1
Premium payments for long-term care insurance that were subtracted in determining federal taxable income.
Ordinary Expenses Paid in Connection with Income
Ordinary and necessary expenses paid in association with income producing property which is excluded from New York income tax but only to the amount included in total federal itemized deductions.
Amortization Interest Exempt from NY Income Tax
Amortization of bond premium attributable to current tax year on any bond whose interest income is excluded from New York income tax, but only to the amount included in total federal itemized deductions.
Interest Expenses on Bonds exempt from NY Income Tax
Where interest expense on funds borrowed to purchase securities and bonds are exempt from NY tax but have been previously included.
Shareholder of a Federal S-Corp
If you are a shareholder of a federal S corporation that could elect but did not elect to be a New York S corporation, any S corporation deductions included in your total federal itemized deductions. If an S corporation short year is involved, you must allocate those deductions.
To enter any of these adjustments to your itemized deductions on your New York return, follow the steps below:
- State Section
- New York Return
- Itemized Deductions
For more information regarding these adjustments to itemized deductions from Form IT-196, please click here.