New for 2018, New York State form IT-196, line 44 should allow addition adjustments for disallowed union dues above 2% floor. How should we account for this?

[ChristieB]

Union dues will be entered in your Federal portion of TurboTax, and then automatically transfer over to your New York return. 

To get to this screen, follow the instructions below: 

When logged into Turbo Tax: 

1.) Click Federal

2.) Deductions & Credits

3.) Employment Expenses

4.) Job Expenses for W-2 Income

5.) Click Yes to having these types of expenses, and then answer the questions that follow

6.) When you arrive at the screen that says Any other expenses? Enter your Union Dues here. 

The union dues will automatically be transferred over to your IT-196, which is your resident, nonresident, and part-year resident itemized deductions form onto line 21 (Unreimbursed Employee Expenses - job travel, union dues, etc).

Unfortunately, while they are technically 100% deductible this year, they are only such if you Itemize your returns on your New York state return. 

If your Standard Deduction is still higher than the sum of all of your Itemized Deductions, it will automatically apply your standard deduction on line 34 of your New York IT-201 return in order to give you the most benefit. This is why you may not see anything change when you enter the information. 

[justinmcohen1]

I entered the union dues on the "any other expenses" form and have itemized deductions on the state form. TurboTax inputs the union dues on NY IT-196 in line 21, but since I'm over the 2% cap, line 28 comes out to zero and no deduction is made. Per the instructions, the union dues should then be re-entered into line 44 - but TurboTax is not doing this. It seems an update is needed - thanks!

[ChristieB]

You are absolutely right, I found this on the IT-196 instructions:

List any of the additional adjustments below that apply to you on a separate piece of paper marked Itemized deduction schedule-addition adjustments with your name(s) and social security number(s). Identify the amount of each adjustment that applies to you by letter (H, I, J, and K). Add all of your addition adjustments and enter the total on line 44. Submit that paper with your Form IT-196
... Amount of disallowed union dues included on the Unreimbursed employee business expenses worksheet, line 4, that were subject to the 2% miscellaneous itemized deduction floor.
<a rel="nofollow" target="_blank" href="https://tax.ny.gov/pdf/current_forms/it/it196i.pdf">https://tax.ny.gov/pdf/current_forms/it/it196i.p...>

In the Desktop Version, you can input this information manually by going to Forms mode, Open Form, and typing in "Oth Add Adj" into the search bar. You can put the amount that you've calculated from the IT-196 instructions, page 21. It will transfer to Line 44 automatically. You could also prepare a page with the adjustments, as mentioned above, but you would have to mail in your return to claim it.

[justinmcohen1]

Thanks! Any chance of the online version being updated to allow this change?

[ChristieB]

You're welcome! I sent everything over today, if I hear back and there turns out to be a way to generate that form within the online version or if there are any updates, I will comment here to let you know.

[joshua2]

Today on March 17, 2019, I see that extra page with adjustments for line 44 as part of my saved PDF file.  The NY State tax return can be submitted electronically.

[cparke3]

I'm certainly not seeing this happen for me, now even in October!

Because the Union Dues is not even a standard entry field in the online TurboTax, rather it is an add-on "Other Job Expenses" that you type in, there's no way for the NY return to know this is eligible expense for the NY addition adjustment to the itemized deductions.  There are only 4 obscure categories allowed, union dues undoubtedly being the most common!