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Deductions & credits
New York starts with what would be your federal itemized deduction if you itemized. This includes the state income tax that comes from your Forms W-2. The other amounts are indeed your property tax and charitable donations. The total of these two items is just slightly above the NY Standard Deduction for your filing status.
You are correct that the phaseout for itemized deductions on line 40 starts at $396,250 for Married Filing Jointly.
However, lines 41 through 49 calculate other adjustments to limit your itemized deduction based on various state law. For example, line 41 is where the state income tax included in line 40 would be backed out since it's not deductible under state law.
Line 46 calculates an "itemized deduction adjustment for higher income taxpayers", which starts at $200,000 of income for Married Filing Jointly taxpayers. You would use worksheet 3 based on your income. This is the adjustment that limits your itemized deductions (property tax and charitable contributions) to below the Standard Deduction.
Please see screenshots below for excerpts from the Form 196 instructions, linked here for your review.