You list all your itemized deductions in the federal section and they flow to the state. However, even then, remember that this deduction in particular is limited by the 2% rule (if your AGI is $100,000, only deductions over $2000 are included), and remember that your total itemized deductions must be more than the state standard deduction for your filing status. Turbotax will do all this automatically. Have you looked at your NYS itemized deductions (I believe it is form IT-196).
