New York IT-196, New York Resident, Nonresident, and Part-Year Resident Itemized Deductions, is used by taxpayers who choose to claim itemized deductions instead of taking the New York standard deduction. The form is filed with Form IT-201 or Form IT-203 and helps calculate deductions for medical and dental expenses, taxes paid, mortgage interest, charitable gifts, casualty and theft losses, job expenses, certain miscellaneous deductions, other itemized deductions, and New York-specific deduction adjustments. Form IT-196 is especially important because New York itemized deductions do not always match federal itemized deductions exactly. Some deductions may need to be limited, reduced, added back, or adjusted depending on income level, filing status, residency status, and the type of deduction claimed. The final result from this form becomes the New York State itemized deduction amount entered on the taxpayer’s main New York income tax return.
How To File New York IT-196 Form
File Form IT-196 with Form IT-201 if you are filing a New York resident income tax return. File it with Form IT-203 if you are filing as a nonresident or part-year resident.
You should complete this form only if you are itemizing deductions for New York purposes. Gather records for medical expenses, taxes paid, mortgage interest, charitable donations, casualty losses, unreimbursed job expenses, gambling losses, disaster losses, college tuition deductions, and any other deduction items that apply.
Do not include expenses that were reimbursed, paid by someone else, or already deducted elsewhere. Keep receipts, statements, tax forms, and worksheets with your records in case the deduction amounts need to be verified later.
How To Complete New York IT-196 Form
Top Information Section
Name(s) As Shown On Your Form IT-201 Or IT-203: Enter your name exactly as it appears on your New York income tax return. If filing jointly, enter both names in the same order used on the return.
Your Social Security Number: Enter the Social Security number of the taxpayer listed first on Form IT-201 or Form IT-203.
Medical And Dental Expenses
Do not include expenses that were reimbursed or paid by another person or organization.
Line 1: Enter your total qualifying medical and dental expenses. Include only expenses that are allowed for itemized deduction purposes.
Line 2: Enter the amount from Form IT-201 or Form IT-203, Line 19. This amount is used to calculate the medical expense limitation.
Line 3: Multiply Line 2 by 10%, or 0.10. Enter the result on this line.
Line 4: Subtract Line 3 from Line 1. If Line 3 is more than Line 1, leave Line 4 blank. This is the deductible medical and dental expense amount.
Taxes You Paid
Use this section to report deductible taxes paid during the year.
Line 5: Enter the state and local tax amount. Mark only one box, either income taxes or general sales tax. Do not mark both boxes.
Line 5a: Mark this box if you are claiming state and local income taxes.
Line 5b: Mark this box if you are claiming general sales tax instead of state and local income taxes.
Line 6: Enter state and local real estate taxes paid during the year.
Line 7: Enter state and local personal property taxes paid during the year.
Line 8: Enter other deductible taxes. List the type of tax and the amount in the space provided.
Line 9: Add Lines 5 through 8. Enter the total taxes paid amount here.
Interest You Paid
Use this section to report deductible mortgage interest, points, and investment interest.
Line 10: Enter home mortgage interest and points reported to you on federal Form 1098.
Line 11: Enter home mortgage interest that was not reported to you on federal Form 1098. If the interest was paid to the person you bought the home from, include that person’s name, identifying number, and address in the space provided.
Line 12: Enter deductible points that were not reported to you on federal Form 1098.
Line 13: This line is reserved. Leave it blank.
Line 14: Enter deductible investment interest expense.
Line 15: Add Lines 10 through 14. Enter the total interest deduction amount here.
Gifts To Charity
Use this section to report charitable contributions.
Line 16: Enter charitable gifts made by cash, check, electronic payment, credit card, debit card, payroll deduction, or another cash-equivalent method.
Line 16a: Enter the amount of qualified contributions included in Line 16.
Line 16b: Enter the amount of contributions to the New York Charitable Gifts Trust Fund that are included in Line 16a.
Line 17: Enter charitable gifts made in a form other than cash or check, such as donated property.
Line 18: Enter any charitable contribution carryover from a prior year.
Line 19: Add Lines 16, 17, and 18. Enter the total charitable gifts amount here.
Casualty And Theft Losses
Line 20: Enter casualty or theft losses other than federal qualified disaster losses. Use only allowable losses after applying the required rules and limits.
Job Expenses And Certain Miscellaneous Deductions
Use this section for certain expenses that may be deductible for New York purposes.
Line 21: Enter unreimbursed employee expenses, such as job travel, union dues, tools, uniforms, or other qualifying work-related expenses.
Line 22: Enter job-related education expenses that qualify for deduction.
Line 23: Enter tax preparation fees paid during the year.
Line 24: Enter other qualifying miscellaneous expenses, such as investment expenses or safe deposit box fees. List the type of expense and the amount in the space provided.
Line 25: Add Lines 21 through 24. Enter the total here.
Line 26: Enter the amount from Form IT-201 or Form IT-203, Line 19.
Line 27: Multiply Line 26 by 2%, or 0.02. Enter the result here.
Line 28: Subtract Line 27 from Line 25. If Line 27 is more than Line 25, leave Line 28 blank. This is the deductible amount after the 2% limitation.
Other Itemized Deductions
Use this section for itemized deductions that do not fit into the earlier categories.
Line 29: Enter gambling losses, but only up to the amount of gambling winnings allowed under the applicable rules.
Line 30: Enter casualty and theft losses from income-producing property.
Line 31: Enter federal estate tax on income in respect of a decedent, if it applies.
Line 32: Enter the deduction for amortizable bond premiums.
Line 33: Enter an ordinary loss from a contingent payment debt instrument or an inflation-indexed debt instrument.
Line 34: Enter the deduction for repayment of amounts under a claim of right if the repayment is more than $3,000.
Line 35: Enter certain unrecovered investments in a pension.
Line 36: Enter impairment-related work expenses of a disabled person.
Line 37: Enter any federal qualified disaster loss.
Line 38: Enter other itemized deductions from partnerships.
Line 39: Add Lines 29 through 38. Enter the total other itemized deductions amount here.
Total Itemized Deductions
Before completing Line 40, check whether Form IT-201 or Form IT-203, Line 19, is more than $204,400.
Line 40, If No: If Line 19 of your main return is not over $204,400, your deduction is not limited. Add the amounts in the far-right column for Lines 4 through 39 and enter the total on Line 40.
Line 40, If Yes: If Line 19 of your main return is over $204,400, your deduction may be limited. Use the required Line 40 worksheet to calculate the amount that should be entered on Line 40.
Line 40: Enter your total itemized deductions after applying the correct limitation rule, if any.
Adjustments
Use Lines 41 through 49 to adjust the itemized deduction amount for New York purposes.
Line 41: Enter state, local, and foreign income taxes, or general sales tax if applicable, along with any other required subtraction adjustments.
Line 42: Subtract Line 41 from Line 40. Enter the result here.
Line 43: If you are filing Form IT-203, enter the college tuition itemized deduction from Form IT-203-B, Line 2. If you are filing Form IT-201, leave this line blank and go to Line 44.
Line 44: Enter any addition adjustments that apply to your New York itemized deductions.
Line 45: Add Lines 42, 43, and 44. Enter the result here.
Line 46: Enter the itemized deduction adjustment amount. This line applies when your deduction must be adjusted under New York rules.
Line 47: Enter the itemized deduction amount after the adjustment. This is the result after applying Line 46.
Line 48: If you are filing Form IT-201, enter the college tuition itemized deduction from Form IT-272, if applicable. If you are filing Form IT-203, leave this line blank and go to Line 49.
Line 49: Add Lines 47 and 48. Enter the total here. This is your New York State itemized deduction. Also enter this amount on Form IT-201, Line 34, or Form IT-203, Line 33.
Final Review Before Filing
Before filing New York IT-196, review every deduction category carefully. Make sure your name and Social Security number match the main return, all math lines are calculated correctly, and no reimbursed expenses are included. Check that Line 40 is handled properly if your income amount on Form IT-201 or IT-203, Line 19, is over $204,400. Confirm that college tuition deductions are entered on the correct line based on whether you are filing Form IT-201 or Form IT-203. Finally, transfer Line 49 to the correct line of your New York income tax return and submit Form IT-196 with that return.