Line 41

To calculate your New York itemized deduction, you must subtract certain amounts that were allowed as a deduction under the IRC but not under New York State Tax Law. Follow these steps:

Add the amounts of the adjustments described in items A through F below that you included in lines 1 through 40. If this total includes any of the adjustments described in items B through F, you must also list them on a separate piece of paper marked Itemized deduction schedule: subtraction adjustments. Identify the amount of each adjustment by letter (B through F) and submit that paper with your Form IT-196.

State and local, income taxes (or general sales tax, if applicable) from Form IT-196, line 5 and any foreign income taxes included on line 8.

Ordinary and necessary expenses paid or incurred in connection with income, or property held for the production of income, which is exempt from New York income tax but only to the extent included on Form IT-196, lines 1 through 40.

Amortization of bond premium attributable to 2023 on any bond whose interest income is exempt from New York income tax, but only to the extent included in Form IT-196, lines 1 through 40.

Interest expense on money borrowed to purchase or carry bonds or securities whose interest is exempt from New York income tax, but only to the extent included in Form IT-196, lines 1 through 40.

If you are a shareholder of a federal S corporation that could elect but did not elect to be a New York S corporation, any S corporation deductions included in Form IT-196, lines 1 through 40. If an S corporation short year is involved, you must allocate those deductions.

Premiums paid for long-term care insurance to the extent deducted in determining federal taxable income (from line 5 of Worksheet 1 below).