Form IT-196 for NY Itemized Deductions: Line-by-Line Walkthrough

Form IT-196 is the schedule you attach to your New York income tax return to claim itemized deductions instead of the standard deduction. You complete it alongside Form IT-201 (residents) or Form IT-203 (nonresidents and part-year residents), work through the deduction categories using figures largely drawn from your federal Schedule A, then apply New York-specific adjustments on lines 41 through 49. The final number on line 49 carries to your main return.¹ For tax year 2025, the filing deadline is April 15, 2026.²

Run the Numbers Even If You Took the Federal Standard Deduction

Starting with tax year 2018, New York decoupled from several federal changes to itemized deductions. You can itemize on your New York return even if you claimed the standard deduction federally.³ This catches people off guard. New York’s standard deduction is considerably lower than the federal one, and the state uses pre-2018 rules that revive deductions the federal code eliminated or capped.⁴ Filing IT-196 pays off only when your total New York itemized deductions exceed the standard deduction for your filing status, but that threshold is easier to clear than most filers expect.

What Changes Between Federal and New York

Three areas produce most of the difference, and knowing them tells you what receipts and records to pull before you start.

State and Local Taxes

The federal return caps combined state and local income, real estate, and personal property taxes at $40,000 ($20,000 for married filing separately).⁵ New York ignores that cap. You can deduct the full amount of real estate and personal property taxes you actually paid, plus foreign taxes paid on real estate.³ What New York does not let you deduct is your own New York state and local income taxes; that portion is subtracted back out on line 41.

Unreimbursed Employee Expenses

The federal code eliminated the deduction for unreimbursed employee expenses after 2017. New York still allows it. Lines 21 through 24 of IT-196 cover work travel, union dues, job-related education (tuition, books, lab fees), tax preparation fees and software, and certain legal and accounting fees.⁶ A 2% floor applies: only the amount above 2% of your adjusted gross income counts.

Casualty and Theft Losses

Federal law now limits casualty and theft loss deductions to federally declared disasters. New York uses the pre-2018 rules, so personal casualty and theft losses remain deductible even without a federal disaster declaration.⁴ The IT-196 instructions walk through the older calculation.

Working Through the Form

The form is available on Tax.NY.gov as a fillable PDF.¹ Enter your name, address, and Social Security number exactly as they appear on your IT-201 or IT-203, then move through the deduction categories.

Medical and Dental Expenses, Lines 1 to 4

Enter the medical and dental expenses from your federal Schedule A, line 1. Only the portion exceeding 7.5% of your adjusted gross income is deductible.⁷ Keep receipts for doctor visits, prescriptions, out-of-pocket insurance premiums, and medical equipment. The New York figure matches the federal one.

Taxes You Paid, Lines 5 to 9

Enter real estate taxes, personal property taxes, and any foreign real estate taxes on the designated lines. Remember: no cap for New York.⁵ State and local income taxes go on line 5 here but get removed later through the subtraction on line 41.

Interest You Paid, Lines 10 to 16

Mortgage interest reported on Form 1098 goes on line 10. Points, investment interest, and other qualifying interest have their own lines. These amounts generally transfer directly from your federal Schedule A.⁵

Gifts to Charity, Lines 17 to 20

Charitable contributions carry over from your federal return. Written acknowledgment is required for any single donation of $250 or more. Noncash donations require records showing fair market value.⁵

Job Expenses and Miscellaneous Deductions, Lines 21 to 27

This is where New York’s pre-2018 rules create the most value for employees with out-of-pocket costs. Line 21 captures work-related expenses like business travel, parking, and home office costs. Line 22 covers job-related education. Line 23 handles tax preparation fees, including software. Line 24 catches other expenses such as custodial fees and investment expenses.⁶ Total these on line 25, then subtract 2% of your AGI on line 27. Only the excess is deductible.

Adjustments, Lines 41 to 49

Lines 41 through 49 reconcile federal and New York law. Line 41 subtracts deductions New York doesn’t allow, primarily your state and local income taxes. Line 44 adds back deductions New York permits but the federal code doesn’t, such as expenses tied to income that’s federally exempt but taxable in New York.⁵ The final result on line 49 is the number you carry to your IT-201 or IT-203. E-filing software handles this arithmetic automatically, which eliminates the most error-prone part of the form.

Reductions If You Earn More

New York shrinks itemized deductions for higher earners. The line 46 adjustment depends on your New York adjusted gross income:

$100,000 or less: no reduction.
$100,001 to $475,000: partial reduction using Worksheet 3 in the instructions.
$475,001 to $525,000: partial reduction using Worksheet 4.
$525,001 to $1,000,000: 50% of the amount on line 45 is subtracted.
Over $1,000,000: line 46 is left blank and the calculation continues on line 47.

Don’t assume your full itemized total carries through if you’re above these thresholds. Separately, line 40 applies pre-2018 federal limits based on federal AGI, starting at $340,700 for single filers, $374,800 for head of household, $408,850 for married filing jointly, and $204,400 for married filing separately.⁵

College Tuition Deduction or Credit

New York offers a college tuition itemized deduction of up to $10,000 per eligible student on line 43 or line 48 of IT-196. As an alternative, you can claim a tuition credit of up to $400 per student on Form IT-272. You cannot claim both for the same student. Above $525,000 in NYAGI the deduction shrinks, and above $1,000,000 it drops to zero, pushing you into the credit.⁵ For filers below those levels who are already itemizing, the deduction often produces a bigger tax savings than the $400 credit. The Form IT-272 worksheets let you compare.

Submitting the Form

Form IT-196 is not filed on its own. It attaches to your IT-201 or IT-203, so your submission method is whatever you use for the main return.¹ There’s no separate fee.

E-filing through certified tax software is fastest and handles the line 41 through 49 math for you. Paper filers mail to different addresses depending on payment:

Without payment: State Processing Center, PO Box 61000, Albany, NY 12261-0001.
With payment: State Processing Center, PO Box 15555, Albany, NY 12212-5555.
Private delivery service: NYS Tax Department, RPC – PIT, 90 Cohoes Ave, Green Island, NY 12183-1515.

FedEx, UPS, and other private carriers must use the Green Island street address rather than the PO Box.⁸ If you need more time, file Form IT-370 by April 15 for an automatic six-month extension. The extension gives you time to file, not to pay.⁹

Records to Keep

Hold onto supporting documents after filing: receipts, property tax bills, Form 1098s, charitable acknowledgment letters, and records of unreimbursed employee expenses. The IRS baseline is three years.¹⁰ New York generally has three years to audit a return, but that window extends to six years if you omitted more than 25% of your gross income, and there’s no time limit for a fraudulent or unfiled return.¹¹Department of Taxation and Finance. Publication 130-F The New York State Tax Audit

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Tax.NY.gov. Form IT-196 New York Resident, Nonresident, and Part-Year Resident Itemized Deductions Tax Year 2025
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Department of Taxation and Finance. Filing Due Dates
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Department of Taxation and Finance. Itemized Deductions (2025)
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Department of Taxation and Finance. Itemized Deductions
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Department of Taxation and Finance. Instructions for Form IT-196 New York Resident, Nonresident, and Part-Year Resident Itemized Deductions
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Tax.NY.Gov. Instructions for Form IT-196 New York Resident, Nonresident, and Part-Year Resident Itemized Deductions
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Department of Taxation and Finance. Personal Income Tax: Tax Expenditure Estimates
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Department of Taxation and Finance. Mailing Address (Personal Income Tax Returns)
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Department of Taxation and Finance. Income Tax Applications for Filing Extensions
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Internal Revenue Service. How Long Should I Keep Records
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