Though many people will no longer be able to itemize on their Federal tax return due to the higher standard deduction, they may be able to on their New York State tax return. Recent changes from New York State allow taxpayers to itemize deductions on their NYS return even if they do not on the federal return.
New York State's standard deductions are $16,050 for MFJ, $11,200 for head of household, and $8,000 for single. Itemized expenses need to exceed these amounts in order for itemizing to be more beneficial.
New York State is also not following other changes made by the federal Tax Cuts and Jobs Act. Itemized deductions that are no longer available on the federal return, such as unreimbursed employee expenses, union dues, state taxed in excess of $10,000, etc., are still available on the New York return.
As we prepare for the upcoming tax season, we are keeping abreast of these and other changes that will affect our New York clients.
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