Updated October 24, 2026. Quick answer: Lines 36 to 38 of New York Form IT-201 turn the dependents listed in item H into the dependent exemption amount and then into taxable income. The booklet says “The value of each New York State dependent exemption is $1,000.” and then “Subtract line 36 from line 35. The result is your taxable income.” Taxable income carries to the tax step on the next page of the form.
What this line does
The booklet’s headings for these lines are “Line 36: Dependent exemption amount” and “Lines 37 and 38: Taxable income”. On the form, line 36 reads “Dependent exemption amount (multiply the number of dependents listed in item H by 1,000)” and line 37 reads “Taxable income (subtract line 36 from line 35)”. These lines sit on page 2 of the form. Line 38 is the first line of the tax block on page 3 and reads “Taxable income (from line 37 on page 2)”.
Line 35 is the result of the deduction step, covered on New York Form IT-201 line 34. For the whole sequence see New York Form IT-201 line by line.
Who it applies to
Line 36 depends on item H, the dependent section at the top of the form. The booklet says “Enter the required information for each dependent you claimed on federal Form 1040.” “Also enter the required information for any dependent you were entitled to claim on your federal return but chose not to (see Example below).”
The booklet’s example reads “You were entitled to claim your child as a dependent on your federal return but chose not to in order to allow them to claim a federal education credit on their federal tax return.” “You may still claim them as a dependent on your New York State return.”
For more than seven dependents on a paper return the booklet says “attach a separate sheet marked Form IT-201: Item H” and then gives two bullets: “your name and Social Security number at the top, and” “the required information for each additional dependent.”
What the instructions say
| Line | What the form says |
|---|---|
| Line 36 heading | “Line 36: Dependent exemption amount” |
| Line 36, value | “The value of each New York State dependent exemption is $1,000.” |
| Line 36, multiply | “Multiply the number of your dependents listed on Form IT-201, item H” “if you are claiming more than 7 dependents) by 1,000, and enter the amount on line 36.” |
| Lines 37 and 38 heading | “Lines 37 and 38: Taxable income” |
| Lines 37 and 38, subtract | “Subtract line 36 from line 35. The result is your taxable income.” |
| Lines 37 and 38, where to enter | “Enter this amount on both line 37 and line 38.” |
| Lines 37 and 38, blank | “If line 36 is more than line 35, leave line 37 and line 38 blank.” |
| Form label, line 35 | “Subtract line 34 from line 33 (if line 34 is more than line 33, enter 0)” |
| Form label, line 36 | “Dependent exemption amount (multiply the number of dependents listed in item H by 1,000)” |
| Form label, line 37 | “Taxable income (subtract line 36 from line 35)” |
| Form label, line 38 | “Taxable income (from line 37 on page 2)” |
| Item H, who | “Enter the required information for each dependent you claimed on federal Form 1040.” |
| Item H, chose not to claim | “Also enter the required information for any dependent you were entitled to claim on your federal return but chose not to (see Example below).” |
| Item H, the example | “You were entitled to claim your child as a dependent on your federal return but chose not to in order to allow them to claim a federal education credit on their federal tax return.” “You may still claim them as a dependent on your New York State return.” |
The figures the form prints
The booklet’s line 36 instruction states the exemption value in one sentence: “The value of each New York State dependent exemption is $1,000.” The same line then tells you to multiply the number of dependents by 1,000.
Where the result goes next
Lines 37 and 38 take the same figure. The booklet says “Enter this amount on both line 37 and line 38.” and the next step, covered on New York Form IT-201 line 39, starts from line 38. If the dependent exemption is larger than line 35, the booklet says “If line 36 is more than line 35, leave line 37 and line 38 blank.”
A worked example
This is an illustration, not a state example. The line 35 amount and the number of dependents are invented. The steps follow the instruction sentences quoted above.
| Line | Calculation | Result |
|---|---|---|
| Line 35 | Invented amount | $60,000 (invented, for the computation) |
| Item H | Invented number of dependents | 2 (invented, for the computation) |
| Line 36 | 2 times $1,000 | $2,000 (computed) |
| Lines 37 and 38 | $60,000 minus $2,000 | $58,000 (computed) |
In this invented case the amount on both line 37 and line 38 is $58,000. Your own line 35 and your own item H count come from your own return.
Edition and line numbers
This page reads Form IT-201-I, Instructions for Form IT-201, Resident Income Tax Return (2025), and Form IT-201, Resident Income Tax Return (2025), New York State Department of Taxation and Finance, for tax year 2025, the current file the New York State Department of Taxation and Finance served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Entering taxable income on only one of the two lines. The booklet says “Enter this amount on both line 37 and line 38.”
- Entering a negative number when the exemption is larger. The booklet says “If line 36 is more than line 35, leave line 37 and line 38 blank.”
- Leaving out a dependent you were entitled to claim federally. The booklet says item H includes “any dependent you were entitled to claim on your federal return but chose not to”.
Related: New York retirement taxes, the homestead exemption in New York, Form 1040 lines 14 and 15, and Form 1040 line by line.
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Answer againSources
- Form IT-201-I, Instructions for Form IT-201, Resident Income Tax Return (2025), New York State Department of Taxation and Finance: www.tax.ny.gov
- Form IT-201, Resident Income Tax Return (2025), New York State Department of Taxation and Finance: www.tax.ny.gov
- Related official page (not quoted): New York State Department of Taxation and Finance, personal income tax forms and instructions page: www.tax.ny.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.