N.Y. Tax Law § 615: New York itemized deduction of a resident individual

§ 615. New York itemized deduction of a resident individual. (a)

General. If federal taxable income of a resident individual is

determined by itemizing deductions or claiming the federal standard

deduction from his or her federal adjusted gross income, he or she may

elect to deduct his or her New York itemized deduction or claim his or

her New York standard deduction. The New York itemized deduction of a

resident individual means the total amount of his or her deductions from

federal adjusted gross income allowed, other than federal deductions for

personal exemptions, as provided in the laws of the United States for

the taxable year, as such deductions existed immediately prior to the

enactment of Public Law 115-97 with the modifications specified in this

section, except as provided for under subsections (f) and (g) of this

section.

(b) Husband and wife.

(1) A husband and wife, both of whom are required to file returns

under this article, shall be allowed New York itemized deductions only

if both elect to take New York itemized deductions.

(2) The total of the New York itemized deductions of a husband and

wife whose federal taxable income is determined on a joint return, but

whose New York taxable incomes are required to be determined separately,

shall be divided between them as if their federal taxable incomes had

been determined separately.

(c) Modifications reducing federal itemized deductions. The total

amount of deductions from federal adjusted gross income shall be reduced

by the amount of such federal deductions for:

(1) state and local general sales taxes as defined in subsection (b)

of section one hundred sixty-four of the internal revenue code, to the

extent included in federal itemized deductions or income taxes imposed

by this state or any other taxing jurisdiction, except city earnings

taxes on nonresidents that are imposed upon and paid by taxpayers for

taxable years beginning after December thirty-first, nineteen hundred

seventy and before January first, two thousand, pursuant to the

authority of former section twenty-five-m of the general city law, to

the extent that the amount of such tax exceeds the tax computed as if

the rates were one-fourth of one percent of wages subject to tax and

three-eighths of one percent of net earnings from self-employment

subject to tax;

(2) interest on indebtedness incurred or continued to purchase or

carry obligations or securities the interest on which is exempt from tax

under this article; and

(3) ordinary and necessary expenses paid or incurred during the

taxable year for (i) the production or collection of income which is

exempt from tax under this article, or (ii) the management, conservation

or maintenance of property held for the production of such income, and

the amortizable bond premium for the taxable year on any bond the

interest on which is exempt from tax under this article, to the extent

that such expenses and premiums are deductible in determining federal

taxable income.

(4) premiums paid for long-term care insurance to the extent that such

premiums are deductible in determining federal taxable income.

* (5) real property taxes imposed by this state or any other taxing

jurisdiction on renters pursuant to section nine hundred twenty-six-a of

the real property tax law.

* NB (Effective pending ruling by Commissioner of Internal Revenue)

(6) in the case of a shareholder of an S corporation

(A) where the election provided for in subsection (a) of section six

hundred sixty has not been made, S corporation items of deduction

included in federal itemized deductions, and

(B) in the case of a New York S termination year, the portion of such

items assigned to the period beginning on the day the election ceases to

be effective, as determined under subsection (s) of section six hundred

twelve.

(8) The amount of any federal deduction for taxes imposed under

article twenty-three of this chapter.

(9) with respect to a taxpayer who has claimed the farm donations to

food pantries credit pursuant to subsection (n-2) of section six hundred

six of this article, the taxpayer's New York itemized deductions shall

be reduced by any charitable contribution deduction allowed under

section one hundred seventy of the internal revenue code with respect to

such donations.

(d) Modifications increasing federal itemized deductions. The total

amount of deductions from federal adjusted gross income shall be

increased by:

(1) an amount, not exceeding one hundred and fifty dollars in the

aggregate, for net premiums paid or incurred by a taxpayer during the

taxable year with respect to any life insurance or endowment policy upon

his life; provided, however, for taxable years beginning on or after

January first, nineteen hundred seventy-one, such amount shall not

exceed one hundred dollars in the aggregate; and for taxable years

beginning on or after January first, nineteen hundred seventy-two, such

amount shall not exceed fifty dollars in the aggregate; and for taxable

years beginning on or after January first, nineteen hundred

seventy-three, no such increase in the amount of deductions from federal

adjusted gross income shall be allowed;

(2) interest on indebtedness incurred or continued to purchase or

carry obligations or securities the interest on which is subject to tax

under this article but exempt from federal income tax, to the extent

that such interest on indebtedness is not deductible for federal income

tax purposes and is not subtracted from federal adjusted gross income

pursuant to paragraph (9) of subsection (c) of section six hundred

twelve; and

(3) ordinary and necessary expenses paid or incurred during the

taxable year for (i) the production or collection of income which is

subject to tax under this article but exempt from federal income tax, or

(ii) the management, conservation or maintenance of property held for

the production of such income, and the amortizable bond premium for the

taxable year on any bond the interest on which is subject to tax under

this article but exempt from federal income tax, to the extent that such

expenses and premiums are not deductible in determining federal adjusted

gross income and are not subtracted from federal adjusted gross income

pursuant to paragraph (10) of subsection (c) of section six hundred

twelve.

(4) allowable college tuition expenses, as defined in paragraph two of

subsection (t) of section six hundred six of this article, multiplied by

the applicable percentage. Such applicable percentage shall be

twenty-five percent for taxable years beginning in two thousand one,

fifty percent for taxable years beginning in two thousand two,

seventy-five percent for taxable years beginning in two thousand three

and one hundred percent for taxable years beginning after two thousand

three. Provided, however, no deduction shall be allowed under this

paragraph to a taxpayer who claims the credit provided under subsection

(t) of section six hundred six of this article.

(5) the full amount of union dues paid during the taxable year if the

taxpayer was not allowed federal miscellaneous itemized deductions by

operation of section 67 of the internal revenue code. If any amount of

union dues representing federal miscellaneous itemized deductions was

allowed, then the amount allowed as a New York itemized deduction for

union dues paid shall be a percentage of the union dues disallowed by

the operation of section 67 of the internal revenue code computed as

follows. The amount allowed as a New York itemized deduction shall be

computed by multiplying the total union dues paid by the taxpayer during

the taxable year by a percentage determined by subtracting from one, a

fraction where the numerator is the amount of federal miscellaneous

deductions allowed and the denominator is the aggregate federal

miscellaneous itemized deductions before application of the two-percent

floor under section 67 of the internal revenue code. For the purposes of

this paragraph, union dues are those amounts that are deductible as

union dues and agency shop fees under section 162 of the internal

revenue code.

(e) Modifications of partners and shareholders of S corporations. (1)

Partners and shareholders of S corporations which are not New York C

corporations. The amounts of modifications under subsection (c) or under

paragraph (2) or (3) of subsection (d) required to be made by a partner

or by a shareholder of an S corporation (other than an S corporation

which is a New York C corporation), with respect to items of deduction

of a partnership or S corporation shall be determined under section six

hundred seventeen.

(2) Shareholders of S corporations which are New York C corporations.

In the case of a shareholder of an S corporation which is a New York C

corporation, the modifications under this section which relate to the

corporation's items of deduction shall not apply, except for the

modification provided under paragraph six of subsection (c).

(3) New York S termination year. In the case of a New York S

termination year, the amounts of the modifications required under this

section which relate to the S corporation's items of deduction shall be

adjusted in the same manner that the S corporation's items are adjusted

under subsection (s) of section six hundred twelve.

(f) Except as provided under subsection (g) of this section, the New

York itemized deduction otherwise allowable under this section shall be

reduced by the sum of the amounts determined under paragraphs one and

two of this subsection.

(1) An amount equal to the New York itemized deduction otherwise

allowable under subsection (a) of this section, multiplied by a

percentage, such percentage to be determined by multiplying, for taxable

years beginning in nineteen hundred eighty-eight, ten percent, and for

taxable years beginning after nineteen hundred eighty-eight, twenty-five

percent, by a fraction,

(A) in the case of an unmarried individual or married individual

filing a separate return, the numerator of which is the lesser of fifty

thousand dollars or the excess of such individual's New York adjusted

gross income over one hundred thousand dollars and the denominator of

which is fifty thousand dollars;

(B) in the case of a married individual filing a joint return or a

surviving spouse, the numerator of which is the lesser of fifty thousand

dollars or the excess of such individual's New York adjusted gross

income over two hundred thousand dollars and the denominator of which is

fifty thousand dollars;

(C) in the case of a head of household, the numerator of which is the

lesser of fifty thousand dollars or the excess of such individual's New

York adjusted gross income over one hundred fifty thousand dollars and

the denominator of which is fifty thousand dollars.

(2) An amount equal to the New York itemized deduction of an

individual otherwise allowable under subsection (a) of this section,

multiplied by a percentage, such percentage to be determined by

multiplying, for taxable years beginning in nineteen hundred

eighty-eight, ten percent, and for taxable years beginning after

nineteen hundred eighty-eight, twenty-five percent, by a fraction, the

numerator of which is the lesser of fifty thousand dollars or the excess

of such individual's New York adjusted gross income over four hundred

seventy-five thousand dollars and the denominator of which is fifty

thousand dollars.

(g) Notwithstanding subsection (a) of this section, the New York

itemized deduction for charitable contributions shall be the amount

allowed under section one hundred seventy of the internal revenue code

or the amount allowable pursuant to paragraph three of this subsection,

as modified by paragraph nine of subsection (c) of this section and as

limited by this subsection. (1) With respect to an individual whose New

York adjusted gross income is over one million dollars and no more than

ten million dollars, the New York itemized deduction shall be an amount

equal to fifty percent of any charitable contribution deduction allowed

under section one hundred seventy of the internal revenue code or

allowable pursuant to paragraph three of this subsection for taxable

years beginning after two thousand nine and before two thousand

twenty-five. With respect to an individual whose New York adjusted gross

income is over one million dollars, the New York itemized deduction

shall be an amount equal to fifty percent of any charitable contribution

deduction allowed under section one hundred seventy of the internal

revenue code or allowable pursuant to paragraph three of this subsection

for taxable years beginning in two thousand nine or after two thousand

twenty-four.

(2) With respect to an individual whose New York adjusted gross income

is over ten million dollars, the New York itemized deduction shall be an

amount equal to twenty-five percent of any charitable contribution

deduction allowed under section one hundred seventy of the internal

revenue code or allowable pursuant to paragraph three of this subsection

for taxable years beginning after two thousand nine and ending before

two thousand thirty.

(3) Contributions to an organization that meets the definition of an

exempt organization under paragraph four of subdivision (a) of section

eleven hundred sixteen of this chapter or to organizations that have

applied for, and were approved for tax-exempt status under subsection

(c) of section five hundred one of the internal revenue code by the

internal revenue service before January first, two thousand twenty-five,

will continue to qualify as charitable contributions allowable as a New

York itemized deduction under this subsection, to the extent otherwise

allowable under section one hundred seventy of the internal revenue

code, even if the internal revenue service revokes such organization's

tax-exempt status, so long as the organization establishes that the

revocation was unrelated to the organization's charitable mission and

that it continues to meet the statutory requirements of paragraph three

of subsection (c) of section five hundred one of the internal revenue

code and the regulations and authorities promulgated thereunder.