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

§ 615. New York itemized deduction of a resident individual. (a)\nGeneral. If federal taxable income of a resident individual is\ndetermined by itemizing deductions or claiming the federal standard\ndeduction from his or her federal adjusted gross income, he or she may\nelect to deduct his or her New York itemized deduction or claim his or\nher New York standard deduction. The New York itemized deduction of a\nresident individual means the total amount of his or her deductions from\nfederal adjusted gross income allowed, other than federal deductions for\npersonal exemptions, as provided in the laws of the United States for\nthe taxable year, as such deductions existed immediately prior to the\nenactment of Public Law 115-97 with the modifications specified in this\nsection, except as provided for under subsections (f) and (g) of this\nsection.\n (b) Husband and wife.\n (1) A husband and wife, both of whom are required to file returns\nunder this article, shall be allowed New York itemized deductions only\nif both elect to take New York itemized deductions.\n (2) The total of the New York itemized deductions of a husband and\nwife whose federal taxable income is determined on a joint return, but\nwhose New York taxable incomes are required to be determined separately,\nshall be divided between them as if their federal taxable incomes had\nbeen determined separately.\n (c) Modifications reducing federal itemized deductions. The total\namount of deductions from federal adjusted gross income shall be reduced\nby the amount of such federal deductions for:\n (1) state and local general sales taxes as defined in subsection (b)\nof section one hundred sixty-four of the internal revenue code, to the\nextent included in federal itemized deductions or income taxes imposed\nby this state or any other taxing jurisdiction, except city earnings\ntaxes on nonresidents that are imposed upon and paid by taxpayers for\ntaxable years beginning after December thirty-first, nineteen hundred\nseventy and before January first, two thousand, pursuant to the\nauthority of former section twenty-five-m of the general city law, to\nthe extent that the amount of such tax exceeds the tax computed as if\nthe rates were one-fourth of one percent of wages subject to tax and\nthree-eighths of one percent of net earnings from self-employment\nsubject to tax;\n (2) interest on indebtedness incurred or continued to purchase or\ncarry obligations or securities the interest on which is exempt from tax\nunder this article; and\n (3) ordinary and necessary expenses paid or incurred during the\ntaxable year for (i) the production or collection of income which is\nexempt from tax under this article, or (ii) the management, conservation\nor maintenance of property held for the production of such income, and\nthe amortizable bond premium for the taxable year on any bond the\ninterest on which is exempt from tax under this article, to the extent\nthat such expenses and premiums are deductible in determining federal\ntaxable income.\n (4) premiums paid for long-term care insurance to the extent that such\npremiums are deductible in determining federal taxable income.\n * (5) real property taxes imposed by this state or any other taxing\njurisdiction on renters pursuant to section nine hundred twenty-six-a of\nthe real property tax law.\n * NB (Effective pending ruling by Commissioner of Internal Revenue)\n (6) in the case of a shareholder of an S corporation\n (A) where the election provided for in subsection (a) of section six\nhundred sixty has not been made, S corporation items of deduction\nincluded in federal itemized deductions, and\n (B) in the case of a New York S termination year, the portion of such\nitems assigned to the period beginning on the day the election ceases to\nbe effective, as determined under subsection (s) of section six hundred\ntwelve.\n (8) The amount of any federal deduction for taxes imposed under\narticle twenty-three of this chapter.\n (9) with respect to a taxpayer who has claimed the farm donations to\nfood pantries credit pursuant to subsection (n-2) of section six hundred\nsix of this article, the taxpayer's New York itemized deductions shall\nbe reduced by any charitable contribution deduction allowed under\nsection one hundred seventy of the internal revenue code with respect to\nsuch donations.\n (d) Modifications increasing federal itemized deductions. The total\namount of deductions from federal adjusted gross income shall be\nincreased by:\n (1) an amount, not exceeding one hundred and fifty dollars in the\naggregate, for net premiums paid or incurred by a taxpayer during the\ntaxable year with respect to any life insurance or endowment policy upon\nhis life; provided, however, for taxable years beginning on or after\nJanuary first, nineteen hundred seventy-one, such amount shall not\nexceed one hundred dollars in the aggregate; and for taxable years\nbeginning on or after January first, nineteen hundred seventy-two, such\namount shall not exceed fifty dollars in the aggregate; and for taxable\nyears beginning on or after January first, nineteen hundred\nseventy-three, no such increase in the amount of deductions from federal\nadjusted gross income shall be allowed;\n (2) interest on indebtedness incurred or continued to purchase or\ncarry obligations or securities the interest on which is subject to tax\nunder this article but exempt from federal income tax, to the extent\nthat such interest on indebtedness is not deductible for federal income\ntax purposes and is not subtracted from federal adjusted gross income\npursuant to paragraph (9) of subsection (c) of section six hundred\ntwelve; and\n (3) ordinary and necessary expenses paid or incurred during the\ntaxable year for (i) the production or collection of income which is\nsubject to tax under this article but exempt from federal income tax, or\n(ii) the management, conservation or maintenance of property held for\nthe production of such income, and the amortizable bond premium for the\ntaxable year on any bond the interest on which is subject to tax under\nthis article but exempt from federal income tax, to the extent that such\nexpenses and premiums are not deductible in determining federal adjusted\ngross income and are not subtracted from federal adjusted gross income\npursuant to paragraph (10) of subsection (c) of section six hundred\ntwelve.\n (4) allowable college tuition expenses, as defined in paragraph two of\nsubsection (t) of section six hundred six of this article, multiplied by\nthe applicable percentage. Such applicable percentage shall be\ntwenty-five percent for taxable years beginning in two thousand one,\nfifty percent for taxable years beginning in two thousand two,\nseventy-five percent for taxable years beginning in two thousand three\nand one hundred percent for taxable years beginning after two thousand\nthree. Provided, however, no deduction shall be allowed under this\nparagraph to a taxpayer who claims the credit provided under subsection\n(t) of section six hundred six of this article.\n (5) the full amount of union dues paid during the taxable year if the\ntaxpayer was not allowed federal miscellaneous itemized deductions by\noperation of section 67 of the internal revenue code. If any amount of\nunion dues representing federal miscellaneous itemized deductions was\nallowed, then the amount allowed as a New York itemized deduction for\nunion dues paid shall be a percentage of the union dues disallowed by\nthe operation of section 67 of the internal revenue code computed as\nfollows. The amount allowed as a New York itemized deduction shall be\ncomputed by multiplying the total union dues paid by the taxpayer during\nthe taxable year by a percentage determined by subtracting from one, a\nfraction where the numerator is the amount of federal miscellaneous\ndeductions allowed and the denominator is the aggregate federal\nmiscellaneous itemized deductions before application of the two-percent\nfloor under section 67 of the internal revenue code. For the purposes of\nthis paragraph, union dues are those amounts that are deductible as\nunion dues and agency shop fees under section 162 of the internal\nrevenue code.\n (e) Modifications of partners and shareholders of S corporations. (1)\nPartners and shareholders of S corporations which are not New York C\ncorporations. The amounts of modifications under subsection (c) or under\nparagraph (2) or (3) of subsection (d) required to be made by a partner\nor by a shareholder of an S corporation (other than an S corporation\nwhich is a New York C corporation), with respect to items of deduction\nof a partnership or S corporation shall be determined under section six\nhundred seventeen.\n (2) Shareholders of S corporations which are New York C corporations.\nIn the case of a shareholder of an S corporation which is a New York C\ncorporation, the modifications under this section which relate to the\ncorporation's items of deduction shall not apply, except for the\nmodification provided under paragraph six of subsection (c).\n (3) New York S termination year. In the case of a New York S\ntermination year, the amounts of the modifications required under this\nsection which relate to the S corporation's items of deduction shall be\nadjusted in the same manner that the S corporation's items are adjusted\nunder subsection (s) of section six hundred twelve.\n (f) Except as provided under subsection (g) of this section, the New\nYork itemized deduction otherwise allowable under this section shall be\nreduced by the sum of the amounts determined under paragraphs one and\ntwo of this subsection.\n (1) An amount equal to the New York itemized deduction otherwise\nallowable under subsection (a) of this section, multiplied by a\npercentage, such percentage to be determined by multiplying, for taxable\nyears beginning in nineteen hundred eighty-eight, ten percent, and for\ntaxable years beginning after nineteen hundred eighty-eight, twenty-five\npercent, by a fraction,\n (A) in the case of an unmarried individual or married individual\nfiling a separate return, the numerator of which is the lesser of fifty\nthousand dollars or the excess of such individual's New York adjusted\ngross income over one hundred thousand dollars and the denominator of\nwhich is fifty thousand dollars;\n (B) in the case of a married individual filing a joint return or a\nsurviving spouse, the numerator of which is the lesser of fifty thousand\ndollars or the excess of such individual's New York adjusted gross\nincome over two hundred thousand dollars and the denominator of which is\nfifty thousand dollars;\n (C) in the case of a head of household, the numerator of which is the\nlesser of fifty thousand dollars or the excess of such individual's New\nYork adjusted gross income over one hundred fifty thousand dollars and\nthe denominator of which is fifty thousand dollars.\n (2) An amount equal to the New York itemized deduction of an\nindividual otherwise allowable under subsection (a) of this section,\nmultiplied by a percentage, such percentage to be determined by\nmultiplying, for taxable years beginning in nineteen hundred\neighty-eight, ten percent, and for taxable years beginning after\nnineteen hundred eighty-eight, twenty-five percent, by a fraction, the\nnumerator of which is the lesser of fifty thousand dollars or the excess\nof such individual's New York adjusted gross income over four hundred\nseventy-five thousand dollars and the denominator of which is fifty\nthousand dollars.\n (g) Notwithstanding subsection (a) of this section, the New York\nitemized deduction for charitable contributions shall be the amount\nallowed under section one hundred seventy of the internal revenue code,\nas modified by paragraph nine of subsection (c) of this section and as\nlimited by this subsection. (1) With respect to an individual whose New\nYork adjusted gross income is over one million dollars and no more than\nten million dollars, the New York itemized deduction shall be an amount\nequal to fifty percent of any charitable contribution deduction allowed\nunder section one hundred seventy of the internal revenue code for\ntaxable years beginning after two thousand nine and before two thousand\ntwenty-five. With respect to an individual whose New York adjusted gross\nincome is over one million dollars, the New York itemized deduction\nshall be an amount equal to fifty percent of any charitable contribution\ndeduction allowed under section one hundred seventy of the internal\nrevenue code for taxable years beginning in two thousand nine or after\ntwo thousand twenty-four.\n (2) With respect to an individual whose New York adjusted gross income\nis over ten million dollars, the New York itemized deduction shall be an\namount equal to twenty-five percent of any charitable contribution\ndeduction allowed under section one hundred seventy of the internal\nrevenue code for taxable years beginning after two thousand nine and\nending before two thousand thirty.\n