NY Tax L § 615 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 2 - Residents 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, 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 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  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 for taxable years beginning after  two  thousand  nine  and ending before two thousand twenty-five.