Line 44: Addition adjustments H, I, J, and K

To calculate your New York itemized deduction, you must add certain amounts that were not allowed under the IRC but are allowed under New York State Tax law.

List any of the addition adjustments below that apply to you on a separate piece of paper marked Itemized deduction schedule-addition adjustments with your name and Social Security number and, if applicable, your spouse’s. Identify the amount of each adjustment that applies to you by letter (H, I, J, and K). Add all of your addition adjustments and enter the total on line 44. Submit the separate piece of paper with your Form IT-196.

Interest expense on money borrowed to purchase or carry bonds or securities whose interest is subject to New York income tax, but exempt from federal income tax, if this interest expense was not deducted on your federal return or shown as a New York subtraction.

Ordinary and necessary expenses paid or incurred during 2023 in connection with income, or property held for the production of income, which is subject to New York income tax but exempt from federal income tax, if these expenses were not deducted on your federal return or shown as a New York subtraction.

Amortization of bond premium attributable to 2023 on any bond whose interest income is subject to New York income tax, but exempt from federal income tax, if this amortization was not deducted on your federal return or shown as a New York subtraction.

Amount of disallowed union dues included on the Unreimbursed employee business expenses worksheet , line 4, that were subject to the 2% miscellaneous itemized deduction floor.

If you did not deduct any union dues as a miscellaneous itemized deduction on your New York State tax return due to the application of the 2% floor, the amount of the modification is the full amount of union dues paid during the tax year.

If you deducted a portion of union dues as a miscellaneous itemized deduction on line 21, the amount of the modification is a percentage of the union dues disallowed due to the 2% floor, calculated as follows:

Example: Pat pays $1,628 of union dues eligible under IRC §162. Pat has federal AGI of $28,000. Pat has total miscellaneous itemized deductions in the amount of $1,850 and is allowed $1,290 in miscellaneous itemized deductions on their New York State tax return after application of the 2% floor. Pat can claim an additional $493 in itemized deductions calculated as follows:

Step 1: $1,290 ÷ $1,850 = .6973 Step 2: 1 − .6973 = .3027 Step 3: $1,628 × .3027 = $493

Partners: Include on line 44 additions H, I, J, and K, described above that apply to your share of partnership deduction items. Obtain your share of partnership items from your Form IT-204-IP, lines 24a through 24f.

S corporation shareholders: If you are a shareholder of a federal S corporation that is a New York S corporation for the tax year, or if you were not eligible to make the election to treat your corporation as a New York S corporation because the corporation is not subject to Article 9-A, general business corporation franchise tax, include on line 44 additions H, I, J, and K, described above that apply to your pro rata share of S corporation items of income, loss or deduction. If the election to be a New York S corporation terminated during the tax year, you must allocate those items. Obtain your share of S corporation items from the S corporation.