2018 New York itemized deductions
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 new Form IT-196, New York Resident, Nonresident, and Part-Year Resident Itemized Deductions, its instructions, and TSB-M-18 (6) I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC) Changes for 2018 and after.
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).
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 2017 and 2018 Internal Revenue Service (IRS) forms and publications to help you compute your New York itemized deductions.
Note: The information in the links below should be used in addition to the line instructions for Form IT-196.
Medical and dental expenses
For federal purposes, you can deduct expenses that exceed 7.5% of your federal adjusted gross income (FAGI). For New York purposes (Form IT-196, line 4), you can deduct only the part of your medical and dental expenses that exceeds 10% of your FAGI.
For specific information on what--and whose--expenses you can and cannot claim as an itemized deduction, see:
- 2018 federal Schedule A, line 1 and instructions for line 1 (not yet available)
- 2018 IRS Publication 502, Medical and Dental Expenses:- for more specific information on what--and whose--expenses you can and cannot claim as an itemized deduction (not yet available)
Taxes you paid
For federal purposes, your total itemized deduction for state and local taxes paid in 2018 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 2018 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
- 2018 federal Schedule A, lines 5a, 5b, 5c, and 5d; and its instructions (not yet available)
Interest you paid
For federal purposes, the itemized deduction rules for home mortgage and home equity interest you paid in 2018 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:
- 2017 federal Schedule A instructions for lines 10, 11, and 12
- 2017 IRS Publication 936, Home Mortgage Interest Deduction
- page 9, Limits on Home Mortgage Interest Deduction
- 2018 federal Schedule A instructions for line 9 (not yet available)
Gifts to charity
For federal purposes, the itemized deduction limitation for certain cash contributions has increased from 50% to 60% of your FAGI. For New York purposes (Form IT-196, lines 16 and 17), the limitation for these cash contributions remains at 50% of your FAGI.
If you have a carryover of a charitable contribution from an earlier year, you can't use the Deduction limits worksheet on page 4 of Form IT-196-I. Instead, see the Carryovers section of IRS Publication 526 for more information.
- 2018 IRS Publication 526, Charitable Contributions (not yet available) for:
- examples of qualified charitable organizations
- contributions you can and cannot deduct
- information on separate gifts or contributions made through payroll deductions
- the meaning of terms used in the Deductions limit worksheet in the instructions for Form IT-196
- 2017 IRS Publication 526, Charitable Contributions, see:
- page 13, Limits on Deductions
- page 14, Temporary Suspension of 50% Limit for Disaster Area Contributions
- page 17, Carryovers
- IRS Publication 561 (04/07), Determining the Value of Donated Property
- 2018 IRS Publication 976, Disaster Relief, criteria for Qualified Contributions (not yet available)
- Federal Form 8283 (12/14), Noncash Charitable Contributions and instructions
Casualty and theft losses
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.
- 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 8582, Passive Activity Loss Limitations, and instructions
- 2017 Federal Form 4797, Sales of Business Property, information for partners and shareholders, and instructions
- IRS Publication 551 (12/16), Basis of Assets, page 6, 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
Job expenses and certain miscellaneous deductions
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
- 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 instructions
For federal purposes, the rules for deducting 2018 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