NYS Itemized deduction not calculating for gambling losses

[wolfy121]

The online premier software is not capturing gambling losses from Federal itemized deductions and flowing through to IT-196.  It's forcing standard deduction, but should not with the gambling losses. Has anyone else seen this issue and have a workaround?

[LindaS5247]

We are aware of the issue and expect an update to the program soon.

You can use this workaround to get your gambling losses to flow to your New York State return as an itemized deduction.

To correct your itemized deductions for New York State, you can manually enter your gambling losses onto Form IT-196 using the following steps: 

1. Click on "Forms" in the top right of your TurboTax screen to switch to "Forms Mode"
2. In your left panel where it lists the forms in your return, click on "Open Form"
3. Click on "2025  New York" (you'll have to scroll down)
4. Then Type "Form IT-196 and click on "Open Form" in blue near the bottom of that pop-up screen
5. Scroll down your "Forms in my Return" in your left panel of your TurboTax screen
6. And find "It-196" which is under your New York Individual  return forms
7. Scroll down to "Line 29, Gambling Losses"
8. Right-click the yellow box and type in "118,137" after "Gambling Losses"
9. This will trigger TurboTax to recognize that itemizing deductions for New York is more advantageous than the standard deduction
10. Your forms will populate and now your Form IT-196 shows the proper information

You can switch back to "Step-by-Step by clicking on "Step by Step" at the top right of your TurboTax screen. You can then go through the Review and Filing process.

Click here for Instructions for Form IT-196 New York Resident, Nonresident, and Part-Year Resident Itemized Deductions.

Please return to Community if you have any additional information or questions and we would be happy to help.