In 2018, itemizing deductions for state and local taxes (SALT) will be limited to $10,000. Actual SALT expenses for many downstate NY homeowners is much higher than $10,000. So, it's better to claim the Federal Standard Deduction of $12,000 (or $13,300 for seniors age 65 or more); and ideally itemize deductions on my NYS tax return.
On Turbo tax- Can I itemize for NYS if I used standard deduction for federal? It automatically used standard deduction for my state calculation.
i am trying to do the same thing and there is no option on Turbo Tax to choose itemize for NYS since I am using the Federal Standard deduction. Help!
@amarti2 - Read my long comment under the answer below. It tells you how to itemize for New York.
I don't see this information. How do you itemized NY and not the federal?
@me7782 Read the long comment below, at the following link.
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@rjs I read the long comment. While it makes sense, it doesn't help the situation. TurboTax just makes the itemized vs. standard NY deduction decision for me without showing me any numbers to ensure that's what I want to do (according to your comment). Showing me this difference is very important to me because my hand-calculation of the itemized deductions indicate that ITS MORE than the standard NY deduction. So I want to be shown the numbers to either figure out if my hand-calculating is wrong or I should override the TurboTax decision (even though overriding doesn't seem possible). How can I see the NY itemized deduction numbers TurboTax used? Is it just not available functionality in TurboTax?
@jessicagross86 The New York itemized deductions are calculated on Form IT-196. You didn't say whether you are using the CD/Download TurboTax software or TurboTax Online. In the CD/Download TurboTax software you can look at Form IT-196 in forms mode even if it's not included in your tax return because the total is less than your New York standard deduction. It will show you how TurboTax calculated the New York itemized deductions. In TurboTax Online there is no way to see a form that is not included in your tax return, so you cannot see Form IT-196 if your New York return is using the standard deduction.
This is not correct. You cannot see NY Form IT-196 on the downloaded TurboTax software. Had I been able to, I would have been able to see the calculations and which made more sense, standard or itemized deduction. But you can't see it. I spent two hours on the phone with TurboTax help over the weekend, and they were surprised you couldn't see IT-196 as well. It's just not there.
@mstrieb If your NY return is using the standard deduction, Form IT-196 will not be in the list of forms on the left side in forms mode because it is not part of your tax return. But you can open the form and see the itemized deductions. First make sure your downloaded software is updated. In forms mode, click the Open Form icon at the top left. In the search box at the top of the Open Form window type IT-196. The form will then be listed in the large box. Click on it to select it, then click the Open Form button at the bottom of the window.
@rjs Yes, it is there. Thank you. So this is how you can see that TurboTax is making the correct decision about standardized vs. itemized deduction. But remember it is only available on the CD/download software, not online. I only wish the two TurboTax consultants I had on the phone the other day knew how to find it. Thank you!!
Thanks for your reply @rjs . I am using TurboTax online, so as you mentioned, I won't be able to check out IT-196 to compare/contrast with my manually filling it out to see where I might have gone wrong.
@rjs Update to my previous comment. While I'm using TurboTax online and indeed don't seem to get the filled out IT-196, when downloading the "Tax returns, worksheets, and TurboTax worksheets" from TurboTax online, despite not getting IT-196, I get helpful worksheets that were used as part of IT-196 calculations, like:
* IT-196 Line 41 "Subtraction Adjustment Limitation Worksheet"
* IT-196 Line 46 "Itemized Deduction Worksheet"
These were helpful in understanding where my manual calculations were wrong.
I, too had the same issue .. not being able to find form IT-196 for my NYS return. After following the instructions from @rjs, I found the answer as well.
Request: Can Turbo add this info as a "hint" to the NYS tax software? I am guessing that *many* people could benefit from this. Thank you for considering my request.
How do you make adjustments to Real Estate Taxes on Form IT-196? Even if you fill out the section about receiving the relief tax refund and star credit via check it doesn’t change anything on the Form but tells you that it needs to be updated on the. form. I even tried entering it on the lines and it won’t let me put in a negative adjustment to account for the refund checks received. Help!
I did not figure out how to make adjustments with turbo tax. I printed IT-196 and filled out by hand and I found that if I itemize NYS while I used standard deduction for federal I would save $11, so I did not itemize NYS. If the savings would have been worth the effort to itemize, I would have amended my NYS return manually and would have resubmitted a signed paper amended return. I am hoping that the turbo tax folks see all this correspondence and change their approach to NYS (and other states such as MD) so that the software checks to see if we should itemize NYS even thought we take the standard deduction with Federal, and then take us through the steps to complete state and federal returns and support e file of both.
Yes, for 2018 you will be able to itemize deductions on your New York tax return, even if you take the standard deduction on your federal return. This is covered in the 2018 instructions for Form IT-201, which are now available on the New York tax web site.
You can see the NYS form 196. Go to the top left black bar, under view click dropdown, click on forms. on the left you will see forms on my return. Just above this you will see open form, click this on. there will be a + box next to 2018 New York. click on this New York + box, a drop down of NYS forms will appear. scroll down to form IT-196, click to highlight and then click the bottom light blue box that says OPEN FORM. Now it should appear. Scroll or print this form IT-196 to understand and review amounts and calculations to see if you should take the Standard or Itemized deduction for 2018 NYS. If the program calculates that the NYS itemized deduction is more beneficial for you, your NY tax return will X the itemized deduction box.
I don't think we can answer your question at this time. The 2017 instructions for New York say you can't do that. If you take the standard deduction on your federal tax return, you have to take the standard deduction on your New York return. The New York instructions for 2018 haven't been published yet. I don't know whether they are going to change that rule in view of the federal SALT limitation. I think you are going to have to wait to get the answer to your question until New York publishes some information about the rules for 2018.
The NYS Dept. of Tax and Finance says "Beginning with tax year 2018, the Tax Law allows you to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return."
<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pit/file/itemized-deductions.htm">https://www.tax.ny.gov/pit/file/itemized-deductions.htm</a>
How do I get the NYS taxes to itemize on Turbo Tax? I have union dues to claim.
I have the same problem. Using standard deduction for federal, and turbo tax automatically use standard deduction for NYS, which is way too low. I'm wondering when Turbotax can make the update.
@pinkytree @lavenderjc @carawang TurboTax will automatically use itemized deductions on your New York tax return, even though you used the standard deduction on your federal return, but note the following.
1. If you are using the CD/Download TurboTax software, make sure your software is up-to-date. See the FAQ at the following link to update your software. (This does not apply if you are using TurboTax Online or the TurboTax Mobile App.)
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901183-how-do-i-update-turbotax-cd-download">https://ttlc.intuit.com/questions/1901183-how-do-i-update-turbotax-cd-download</a>
2. You must enter your itemized deductions in the FEDERAL Deductions & Credits section of the TurboTax interview, even though your federal tax return is using the standard deduction. There is no place to enter itemized deductions in the New York state interview.
3. Your New York itemized deductions must be more than your New York standard deduction. Some federal itemized deductions are not allowed on the New York return. See the following link for the New York standard deduction for your filing status.
<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pit/file/standard_deductions.htm">https://www.tax.ny.gov/pit/file/standard_deductions.htm</a>
4. TurboTax does not highlight the fact that it is using itemized deductions for New York. The only place you will see it, other than on the actual tax form, is on the screen at the end of the New York Interview that says "Let's Review Your New York Numbers." Under the Income heading on that screen it shows you whether it is using the standard deduction or itemized deductions.
Is TurboTax making a valid decision to use the standard deduction rather than the itemized deduction for my NY State taxes? In other words, it chose to use the standard deduction for me, but I can't find any way to see what my itemized deduction would be to make sure TurboTax made the right decision. (Some quick calculations indicate I should be itemizing for NY State, not using the standard deduction that TurboTax is using.) Can I tell TurboTax to use the itemized deduction rather than standard? How would I do this?
TurboTax is automatically taking the standard deduction for New York and I have no option to tell it to itemize deductions. I want to itemize my NY state deductions for 2018 because specifically because the state/local tax deductions don't have a limit like federal deductions do. So how can I tell TurboTax to not take the standard NY deduction and instead itemize deductions for New York.
@jessicagross86 I don't see any way to force TurboTax to use itemized deductions if your New York itemized deductions are less than your New York standard deduction. I don't know why you would do that, since it would mean paying more tax.
The fact that the state and local tax deduction is not capped on the New York return does not necessarily mean that your New York itemized deductions will be more than your New York standard deduction. Keep in mind that state and local income tax or sales tax is not deductible on the New York return, so that reduces your deduction for state and local taxes. The only state or local tax you can claim as an itemized deduction on your New York return is real estate tax.