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SECTION 615
New York itemized deduction of a resident individual
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 2
§ 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.