How to select itemized deduction for NYS while keeping standard deduction for federal?

[BillM223]

It appears that TurboTax will automatically select the better of the standard deduction or the itemized deductions. The standard deduction for 2020 can be seen here. As you can see, MFJ standard deduction is $16,050.

I entered data into the federal return totally $20,000 in mortgage interest and property taxes. On Schedule A, TurboTax added $2,000 for NY income tax.

This $22,000 was carried to NY where the $2,000 was removed (NY state taxes are not deductible in NY), so I was left with $20,000. 

Since $20,000 is greater than $16,050, TurboTax chose the Itemized Deductions for NY in my test.

Do you feel that TurboTax is not making the right choice for you?

[mring1515]

That's exactly what I'm looking to achieve but it's not doing that, the system picked standard for NY and I don't see how to choose otherwise. 

[DaveF1006]

Presently, Turbo Tax makes that determination for you if the standard deduction is more advantageous. There is no option in the program for you to make that choice yourself.

[mring1515]

Sorry if I wasn't clear.  Turbo is choosing the standard for NY which is less than the itemized.  How can this be corrected?  Seems like it worked correctly in your test environment but it doesn't seem to be working in production.

[BillM223]

OK, what are the items that are itemized for NY? Remember that not all items itemized on the federal return can be itemized in New York (for example, NY income taxes). And what is your filing status in NY?

[mring1515]

Roughly 20K for mtg interest, property tax and charitable donation. Married-jointly.

[BillM223]

I just created a test (Windows 10, Home & Business) in which I had $12,000 in mortgage interest, $7,000 in property tax, and $1,000 in charitable contributions, adding up to $20,000.

The federal return took the standard deduction of $24,800 and the New York return took itemized deductions of $20,000.

So, obviously, there is something in your return that isn't the same as in my test.

So, we could play ping-pong back and forth, or you could share with us a sanitized version of your return (all personal information removed) so I can see what is different.

So if you are willing, please read on...

***

I'm going to need your help to get more information. Please send me a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

***Online Product***

1. Sign into your online account.
2. Locate the Tax Tools on the left hand side of the screen.
3. A Drop down will appear. Click on Share my file with agent.
4. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
5. Please provide the Token Number that was generated onto a response to this thread.

***Desktop Product***

1. Click into your return.
2. Click Online and select "Send Tax File to Agent".
3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
4. Please provide the Token Number that was generated onto a response to this thread.

Also, at the end of your reply, please enter @ BillM223 (without the space in between) so I will be notified of your post).

[mring1515]

821654@BillM223

[BillM223]

@mring1515

You were caught by the Itemized Deduction Adjustment, which places a limitation on your NY itemized deductions because of your NY adjusted gross income and filing status. 

Your original itemized deduction was just under $20k, as you said. However, because of this adjustment due to your income, $5,168 was subtracted from this, so that your NY itemized deductions were reduced to about $14,500 - less than the standard deduction for your filing status of $16,050.

You can see part of the calculation in the "Form IT-196 line 46 Itemized Deduction Adjustment" (abbreviated as "ItmDedAdj (196)" in the Forms list if you have the Cd/download software).

There does not appear to be a clear worksheet showing the subtraction, but this clearly the cause of TurboTax not giving you Itemized Deductions on your NY return.

[mring1515]

Ok thanks. My income was a lot higher than last year so that makes sense.@BILLM223