Beginning with tax year 2018, the Tax Law allows you to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return. See TSB-M-18(6)I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC) Changes for 2018 and after, for more information on this change.
In general, your New York itemized deductions are computed using the federal rules as they existed prior to the changes made to the Internal Revenue Code (IRC) by the Tax Cuts and Jobs Act (Public Law 115-97).
New York State itemized deductions are reported on Form IT-196, New York Resident, Nonresident, and Part-Year Resident Itemized Deductions. For certain New York itemized deduction computations, the instructions for Form IT-196 may refer you to this webpage for additional information or instruction.
We briefly describe the difference between federal and New York State itemized deduction rules below. In addition, we provide links to specific current and prior year Internal Revenue Service (IRS) forms and publications to help you compute your New York itemized deductions.
Select the tax year:
2020 New York itemized deductions
For specific information on what—and whose—expenses you can and cannot claim as an itemized deduction, see:
- 2020 federal Schedule A, line 1 and its instructions (not yet available)
- 2020 IRS Publication 502, Medical and Dental Expenses (not yet available)
For federal purposes, your total itemized deduction for state and local taxes paid in 2020 is limited to a combined amount not to exceed $10,000 ($5,000 if married filing separate). In addition, you can no longer deduct foreign taxes you paid on real estate. For New York purposes (Form IT-196, lines 5, 6, and 7), your state and local taxes paid in 2020 are not subject to the federal limit and you can deduct foreign taxes you paid on real estate (Form IT-196, line 8).
For specific information, see:
- 2017 federal Schedule A instructions for lines 5 through 8
- 2020 federal Schedule A, lines 5a, 5b, 5c, and 5d; and its instructions (not yet available)
For federal purposes, the itemized deduction rules for home mortgage and home equity interest you paid in 2020 have changed from what was allowed as a deduction for tax year 2017. For New York purposes (Form IT-196, lines 10 and 11), these changes do not apply.
For specific information, see:
For New York purposes (Form IT-196, lines 16 through 18), your New York itemized deduction for gifts to charity is computed using the federal rules that applied to tax year 2020.
For specific information on charitable contributions, see:
- 2020 federal Schedule A instructions for lines 11, 12, and 13 (not yet available)
For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line 37), see Other miscellaneous deductions, below.
- 2017 IRS Publication 547, Casualties, Disasters, and Thefts:
- page 3, Special Procedure for Damage from Corrosive Drywall and Special Provision for Damage from Deteriorating Concrete Foundation
- page 5, Figuring a Loss, including information on leased property or loss of inventory
- page 12, Postponement of Gain
- 2017 IRS Publication 523, Selling Your Home, main home destroyed
- 2017 Federal Form 4797, Sales of Business Property, and its instructions (information for partners and shareholders)
- IRS Publication 551 (12/18), Basis of Assets, page 7, Basis other than cost
- 2017 Federal Form 8829, Expenses for Business Use of Your Home, and its instructions
- 2017 Federal Form 8582, Passive Activity Loss Limitations, and its instructions
- IRS Publication 4895 (10/11), Tax Treatment of Property Acquired From a Decedent Dying in 2010
- IRS Revenue Ruling 2009-9, Tax Treatment of Losses
- Internal Revenue Bulletin 2011-50
- page 849, Theft losses from fraudulent investment arrangements
- Internal Revenue Bulletin 2009-14
- page 735, Tax treatment of losses
- page 749, provides an optional safe harbor method for eligible taxpayers to deduct theft losses from criminally fraudulent investment arrangements that take the form of "Ponzi" schemes
- IRS Revenue Procedure 2009-20
- IRS Revenue Procedure 2011-58
For federal purposes, you can no longer claim an itemized deduction for job expenses and certain miscellaneous deductions that were subject to the 2 percent of FAGI limitation. For New York purposes (Form IT-196, lines 21 through 24), you can claim these deductions:
- 2017 IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses
- 2020 IRS Publication 463, Travel, Gift, and Car Expenses (not available yet)
- 2017 IRS Publication 529, Miscellaneous Deductions
- 2017 IRS Publication 587, Business Use of Your Home Including Use by Daycare Providers
- 2017 IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers
- 2017 IRS Publication 970, Tax Benefits for Education, job related education expenses
- 2017 Federal Form 2106, Employee Business Expenses, and its instructions
- 2020 Federal Form 2106, Employee Business Expenses, and its instructions (not available yet)
- 2020 Publication 946, How To Depreciate Property (not available yet)
- 2017 Federal Form 4562, Depreciation and Amortization (Including Information on Listed Property), and its instructions
- 2020 Federal Form 4562, Depreciation and Amortization (Including Information on Listed Property), and its instructions (not yet available)
For federal purposes, the rules for deducting gambling losses have changed. For New York income tax purposes, gambling loss deductions are limited to the amount of gambling income reported on your return. Other miscellaneous deductions are claimed on Form IT-196, lines 29 through 37.
- 2017 IRS Publication 547, Casualties, Disasters, and Thefts
- 2017 IRS Publication 559, Survivors, Executors, and Administrators
- 2017 IRS Publication 550, Investment Income and Expenses (including Capital Gains and Losses), Chapter 3, Bond Premium Amortization
- 2017 IRS Publication 525, Taxable and Nontaxable Income
- 2017 IRS Publication 575, Pension and Annuity Income