New York's School Tax Relief (STAR) and Enhanced School Tax Relief (E-STAR) programs provide property tax relief to eligible homeowners. In many cases, the benefit is issued as a STAR credit check directly from New York State.
Do I Need to Report My STAR Credit on My New York Return?
In most situations, no.
If you received a STAR credit check during the year, you generally do not need to enter it anywhere on your New York income tax return.
However, there is one important exception:
- If you itemize deductions, you must reduce your deductible real estate taxes by the amount of any STAR credit you received during the year.
Keep your STAR credit check stub or supporting documentation with your tax records in case the information is needed later.
What If I'm Claiming the Real Property Tax Credit (Form IT-214)?
If you are completing Form IT-214, Claim for Real Property Tax Credit for Homeowners and Renters, you must reduce your real property taxes by any STAR credit received.
Program Entry
If you are claiming the Real Property Tax Credit:
- State Section
- Edit New York Return
- Credits
- Real Property Tax Credit (IT-214)
Be sure to enter the reduced property tax amount after accounting for any STAR credit received.
How Do I Reconcile My STAR Advance Payment?
If you received a notice from the New York State Department of Taxation and Finance indicating that your estimated STAR advance payment resulted in an underpayment, you may be able to claim the difference using Form IT-119, STAR Credit Advance Payment Reconciliation.
Program Entry
- State Section
- Edit New York Return
- Credits
- STAR Credit Advance Payment Reconciliation (IT-119)
Complete the reconciliation section using the information provided in the notice received from New York.
Important Things to Remember
- STAR credit checks are generally not entered directly on your New York return.
- Taxpayers who itemize deductions must reduce deductible real estate taxes by the STAR credit received.
- Taxpayers claiming the Real Property Tax Credit (IT-214) must reduce property taxes paid by the STAR credit received when calculating the credit.
- Taxpayers who receive a STAR reconciliation notice should complete Form IT-119 to claim any allowable refundable credit.
Additional Information
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