State tax filing
Form IT-558 applies if you received a K-1 from a NY Partnership, NY based S Corporation, or were a beneficiary of an estate or trust and the estate or trust reported adjustments to Federal taxable income because of New York State decoupling from the Internal Revenue Code after March 1, 2020.
In a nutshell, New York decoupling predominantly pertains to the limitations that were place on certain deductions for Federal Income Tax purposes which New York State still allows, like total state and local taxes being limited to $10,000 for Federal purposes but still allowed in totality for New York State purposes.
You need to look for the information supplied with the K-1(s) that you received to determine where it applies and check the state adjustment section for where to enter the amount(s). Your K-1 for New York State, perhaps identified as Form IT-204-IP for partnerships or CT-34-SH for S Corporations should show what needs to be addressed and adjusted and entered on Form IT-558, which TurboTax, both the online version and the desktop version, does support.
The links below will show you the forms and instructions for each form. To enter in to TurboTax for New York, navigate to "Other New York adjustments to federal income", scroll down to the last item and click "Start" at "Partner, shareholder and beneficiary adjustments".
The codes you need for additions and/or subtractions should be shown on the form or the supplementary information you received.
Once the information is entered, you will return to the Changes to Federal Income screen and you should be able to complete your return for the New York section.
