Re: NYS Star Credit and itemizing Deductions

Forum|Forum|7 months ago
February 15, 2026
1 reply
83 views

Afternoon everyone !! So I'm 71 and I usually subtract my NYS Star credit amount from my total property taxes on my 2025 Federal tax return when I itemize which I have been doing for years . When I do it this year Turbotax states that I am better off taking the standard deduction this year . I thought that if I take the standard deduction the Star Credit doesn't have to be deducted from the property taxes . So when I put the full amount of property tax back in it will come back saying I should now itemize . Feels like I'm a loop here !! Does TurboTax do the calculation automatically when it has the NYS Star Credit in to subtract that amount from the total property tax ??

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Best answer by DaveF1006

No, TurboTax doesn’t automatically subtract your STAR credit from the property taxes you enter in the federal section.

For your federal return, you can only deduct the property taxes you actually paid. Since the STAR credit is a refund of part of your school taxes, you’ll need to subtract that amount from your total property tax before entering it in TurboTax.
Later, in the New York state section, TurboTax will ask if you received a STAR check. That question is for a different reason. It won't change the property tax amount you put on your federal return, but it will only affect your state tax return that may allow you to itemize.

DaveF1006Answer

Level 15

No, TurboTax doesn’t automatically subtract your STAR credit from the property taxes you enter in the federal section.

For your federal return, you can only deduct the property taxes you actually paid. Since the STAR credit is a refund of part of your school taxes, you’ll need to subtract that amount from your total property tax before entering it in TurboTax.
Later, in the New York state section, TurboTax will ask if you received a STAR check. That question is for a different reason. It won't change the property tax amount you put on your federal return, but it will only affect your state tax return that may allow you to itemize.

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