Start For Free

Fast, Secure, and Always Accurate!

Back to List

Category: New York

New York Itemized Deductions

The starting point in computing your New York Itemized Deduction amount is your federal itemized deductions from Federal Schedule A. However, differences between federal and New York State tax laws make it necessary to make certain adjustments to your federal itemized deductions in computing your New York itemized deduction.

 

Additions to Federal Itemized Deductions

  • Interest Expenses on Income Subject to NY Tax- Interest expense on money borrowed to purchase or carry bonds or securities whose interest is subject to New York income tax, but exempt from federal income tax, if this interest expense was not deducted 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 2016 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.
  • College tuition itemized deduction Did you, your spouse, or your dependent(s) pay any college
    tuition expenses during 2016?  If Yes, you may be eligible to claim either the college tuition itemized deduction or the college tuition credit. However, you cannot claim both.

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, lines 5 and 8.
  • Ordinary Expenses Paid in Connection with Income - Ordinary and necessary expenses paid or incurred in connection with income, property held for the production of income, which is exempt from New York income tax but only to the extent included in total federal itemized deductions.
  • Amortization Interest Exempt from NY Income Tax- Amortization of bond premium attributable to 2016 on any bond whose interest income is exempt from New York income tax, but only to the extent included in total federal itemized deductions.
  • 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.
  • Interest Expense on Money borrowed to purchase Bonds 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.
  • Long-Term Care Premiums Included on Federal Schedule A, Line 1- Premiums paid for long-term care insurance to the extent deducted in determining federal taxable income.

 

For additional information, please see Itemized Deductions on Form IT-201.