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Itemized vs Standard Deductions for NY Form IT-201 in ProConnect

SOLVEDby IntuitUpdated July 13, 2023

Table of contents:

How can I force the standard deduction for the NY IT-201?
Federal Form 1040 includes Itemized Deductions. Why does the New York Form IT-201 show the Standard Deduction instead of Itemized Deductions New York Form IT-201?
I itemized deductions on Federal Form 1040. Why is the Standard Deduction showing instead of Itemized Deductions on New York Form IT-201?

How can I force the standard deduction for the NY IT-201?

There is an entry in Itemized Deductions State & Local Force standard deduction checkbox.

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Federal Form 1040 includes Itemized Deductions. Why does the New York Form IT-201 show the Standard Deduction instead of Itemized Deductions New York Form IT-201?

The software will optimize between the NY standard deduction and itemized deductions to give the taxpayer the larger amount of tax savings.

The instructions for Line 34 of New York Form IT-201 say:

Line 34 Standard or itemized deduction
Follow these steps to determine which deduction to use:

  1. If you took the standard deduction on your federal return, or if you did not have to file a federal return, you must take the New York standard deduction. Use the standard deduction table below to find the standard deduction amount for your filing status. Enter the amount on line 34, mark an X in the Standard box, and go to line 35.
  2. If you itemized deductions on your federal return, use Form IT-201-D, Resident Itemized Deduction Schedule, and its instructions beginning on page 37 to compute your New York itemized deduction. Compare the Form IT-201-D, line 16 amount to your New York standard deduction amount from the standard deduction table. For greater tax savings, enter the larger of these amounts on line 34 and mark an X in the appropriate box, Standard or Itemized.

New York's tax law limits itemized deductions of upper income taxpayers through a percentage reduction:

Deduction Limitations:

  • 25% of the itemized deduction for single taxpayers with NYAGI > $100,000 and married taxpayers with NYAGI > $200,000
  • 50% percent of the itemized deductions for all taxpayers with NYAGI > $525,000 and < $1 million
  • Itemized deductions are completely eliminated, except for 50% of charitable contributions for NYAGI > $1 million

If the above does not apply, check for Long-Term Care Premiums. New York uses the Federal worksheet to determine the phase out of itemized deductions. Go to Screen 25, Itemized Deductions and check to see if Long Time Care Premiums are entered as a deduction on the Federal Sch A. If there are, refer to the New York Long Term Care Adjustment Worksheet for NY Form IT-201 / IT-203. NY allows a credit for Long-Term Care premiums. To avoid "double-dipping" by taking the full credit and itemized deduction, the software does a calculation on this worksheet to subtract a portion from the itemized deductions. If that puts the allowable itemized deductions for NY at a lesser amount than the standard deduction, the software will take the standard deduction.

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I itemized deductions on Federal Form 1040. Why is the Standard Deduction showing instead of Itemized Deductions on New York Form IT-201?

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 (federal Schedule A, Itemized Deductions).

In general, your New York itemized deductions are computed using the federal rules as they existed prior to the enactment of the TCJA. Additionally, there are two new itemized deduction adjustments:

  • Farm donation to food pantries subtraction adjustment – You may not use the same qualified donation to a food pantry to claim both a charitable contribution itemized deduction and a farm donation to food pantries credit (see Form IT-649, Farm Donations to Food Pantries Credit) for New York income tax purposes.
  • Union dues addition adjustment – The portion of your union dues not included as a miscellaneous itemized deduction on Form IT-196, New York Resident, Nonresident, and Part-Year Resident Itemized Deductions, line 21, can be added to your total itemized deductions when computing your New York itemized deduction.

For additional information, see Form IT-196 and its instructions.

New York Itemized Deductions can be adjusted. 

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