To correct your itemized deductions for New York State, you can manually enter your gambling losses onto Form IT-196 using the following steps:
- Click on "Forms" in the top right of your TurboTax screen to switch to "Forms Mode"
- In your upper left panel where it lists the forms in your return, click on "Open Form"
- Click on "2025 New York" (you'll have to scroll down)
- Then Type "Form IT-196" and click on "Open Form" in blue near the bottom of that pop-up screen
- Scroll down your "Forms in my Return" in your left panel of your TurboTax screen
- And find "It-196" which is under your New York Individual return forms and click on it
- Scroll down to "Line 29, Gambling Losses"
- Right-click the yellow box and type in your gambling losses"$XXX,XXX" after "Gambling Losses"
- This will trigger TurboTax to recognize that itemizing deductions for New York is more advantageous than the standard deduction
- Your forms will populate and now your Form IT-196 shows the proper information
This manual entry prompts TurboTax to choose to itemize your state return. I could not determine why it did this for you. I created a similar return in my TurboTax program, and it handled it properly.
Your Itemized Deductions are limited by New York because of your income. See line 49 of Form IT-196. That amount (your adjusted itemized deductions" is carried over to line 34 of your New York State Individual Income Tax Return Form IT-201, page 2.
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.
{Edited 01/30/2026|3:35 PST}
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