How do i enter itemized deductions for New York State?

[rjs · Accepted solution]

You have to enter your itemized deductions in the federal Deductions & Credits section of the TurboTax interview, even if you don't have enough deductions to itemize on your federal tax return. The deductions will flow to the New York return. Some federal itemized deductions are not allowed on the New York return. If your New York itemized deductions are more than your New York standard deduction, TurboTax will use itemized deductions on your New York return.

Note that 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.

[pponterio]

What about the reverse situation like for "entertainment" expenses?  These are no longer deductible on the federal side but the New York state return still acknowledges these as a deduction - where do I enter these for a self-employed Schedule C business?

[rjs]

Business expenses for self-employment are not itemized deductions. Enter them under business expenses in the business income section of the federal interview.

[rjs]

Where do you see that business entertainment expenses are still deductible on the New York tax return? Net Schedule C income from the federal return flows to the New York return with no adjustment for entertainment expenses. It appears to me that the federal rules for Schedule C effectively apply to New York as well. Can you point to a statement from the New York Department of Taxation and Finance that entertainment expenses that are not allowed on the federal Schedule C are allowed for New York?

[klc8]

All my itemized deductions information are entered in the Federal deductions and credits, but it just doesn't flow thru to NYS.  Turbotax online chose the standard deductions for me when I clearly can use itemized.  Please help on how to fix this?  thank you.

[rjs]

@klc8 - Not all of your federal itemized deductions are allowed on the New York return, most notably state and local income tax or sales tax.

Check the amount of your New York standard deduction at the following link.

<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pit/file/standard_deductions.htm">https://www.tax.ny.gov/pit/file/standard_de...>

It's difficult to figure out a problem like this in TurboTax Online, because you cannot see Form IT-196 if it's not being used in your New York tax return. You can download Form IT-196 and its instructions from the following link and fill it out manually to see the calculation of your New York itemized deductions. Be sure to go all the way to the end of the form, because there are significant adjustments at the end. The line that says "total itemized deductions" is not your final New York itemized deductions.

<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pit/ads/efile_addit196-2d.htm">https://www.tax.ny.gov/pit/ads/efile_addit196-...>
<a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/pdf/current_forms/it/it196i.pdf">https://www.tax.ny.gov/pdf/current_forms/it/...>

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