NY PREPARERS: MFS ISSUE

[GraceNY]

According to IT-201 Instructions, page 73 (Standard or Itemized Deduction): "If you are married and filing separate returns, both of you must take the standard deduction unless both of you itemized deductions on the federal returns and both of you "elect" (my emphasis) to itemize deductions on your NY returns."

BOTH Itemized on Federal Returns, however, I am taking Standard Deduction (neither spouse is "electing" to itemize) on BOTH NYS returns. Problem/Issue: Even when I UNcheck the box on the NYS return (Under Resident Options Tab, "If you are MFS and your spouse itemizes deductions on NY return, check box."), the itemized deduction is still taken. I've tried deleting and recreating the IT-201 to no avail. I could override, but don't like doing that. Only resolution so far is duplicating return, taking SCH A off of Federal, and that changes NY to Standard Deduction.

What am I doing wrong? OR Is this just a software issue?

Grace