Although I itemized my deductions for federal tax purposes, and I understand NYS does not allow certain deductions, it seems Turbo Tax is defaulting to the standard deduction of $16,050 for married filing jointly. My itemized deductions are far in excess of the standard deduction amount, and I can't seem to find anyway to adjust this. I am also unable to view the form IT-196 to understand what calculation was used to make this determination, even after paying for TurboTax. Any thoughts on how I can make the change or at least be able to see how they come to the decision to default to the standard deduction?
TurboTax will automatically calculate the best New York income tax deduction—itemized or standard. The deduction does not have to match federal, so you can have a federal standard deduction and NY itemized, or vice versa.
New York itemized deductions do not include state tax withheld or paid. It's possible that's why it seems like you should be getting New York itemized deductions when you are getting the standard deduction.
You are not able to see Form IT-196 because TurboTax is using the standard deduction. You can speak to a Tax Expert who can download your sanitized tax data into the desktop program and force a Form IT-196. Or you can get an offline review. It's free to TurboTax Live customers.
See: What is a tax expert written response and how do I get one?
I had the same problem in Virginia. It is to my advantage to itemize for my state taxes but TurboTax keeps choosing the standard deduction and would not let me change. I found a work around. Go to forms. Click on info wks. Go to part VI and check one of the three boxes. Hope this helps.