NY State Itemized Deductions

[kj-otoro]

I recently updated my federal deductions with medical expenses which raised my itemized deductions by about $1000 but my NY State itemized deductions did not change at all.

I was told by an expert that the NY State itemized deductions was the Federal deductions - SALT deductions and medical expenses should be included in the itemized deductions so shouldn't my NY State deductions been increased as well? I am out an out of state resident if that helps any.

Thanks in advance!

[LindaS5247 · Accepted solution]

Yes, medical expenses and SALT deductions are included in Your New York State itemized deductions but they may not increase, even if your federal itemized deductions went up, because New York applies its own rules and limitations. This includes a 10% Adjusted Gross Income (AGI) threshold for medical expenses rather than the federal 7.5%.  See Form 196 lines 1-4. See: Form IT-196.

And in addition, New York limits itemized deductions for high-income earners starting at AGI of $100,000.
 

Keep in mind: if your total itemized deductions don't exceed the NYS standard deduction, it won't lower your tax bill.

If this is not the case on your tax return you could try deleting the entries in TurboTax and re-entering them to try to trigger a recalculation. Or delete your state tax return and re-enter it to force TurboTax to recalculate.

See Also:

How do I delete my state return in TurboTax Online?

How do I delete my state return in TurboTax Desktop for Windows?

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