This new credit is for tax year 2021 and 2022 and 2023. This credit is for taxpayers who pay more than 6% of their income for property taxes.
Note: If you itemize deductions on your New York State income tax return, you must reduce the amount of real property taxes claimed by the amount of this credit (see Form IT-196).
- Taxpayers cannot earn more than $250,000
- Must have been in their home for more than 183 days
- Must be full year New York State Residents.
- Home must be their personal residence.
How much is the credit?
No credit is allowed if the amount of the credit computed is less than $250.
The maximum amount of the credit allowed is $350.
Taxpayer makes $100,000 and pays $10,000 in property tax. The “excess” property tax (the amount over 6% of income) is $4,000.
Based on the calculation (see Instructions), the excess property tax eligible for the credit would be about $493. Since that number is greater than $350, the tax credit would be $350 —The maximum allowed.
Where is this in the program?
- State Section
- NY Resident Return
- Real Property Tax Relief Credit (IT-229)