@JosephS1, thanks for your help! I have a follow up question if you don't mind. Unfortunately, it needs a bit of context ...
Each year, I receive a STAR tax relief / rebate / credit check from NYS. And each year, I make sure that both my federal return and my NYS return reflect the actual property tax that I paid. Here is the simple calculation that I use:
Real estate tax paid = Property tax paid + School tax paid - STAR credit received
This means that federal Schedule A Line 5b exactly matches NYS IT-196 Line 6.
Tax year 2022 has the added bonus of a one time 2022 homeowner tax rebate credit (HTRC). No problem. I'm handling it the same way as I do the STAR credit. When I start working on my NYS return, Schedule A Line 5b still exactly matches NYS IT-196 Line 6.
What's throwing me is that I apparently qualify for a $350 real property tax relief credit in 2022 as well (IT-229). But I don't learn that until my federal return is done and I'm working on my NYS return. Once that credit gets taken into account, NYS IT-196 Line 6 becomes $350 less than federal Schedule A Line 5b.
Do I need to go back to the federal return and subtract $350 from Schedule A Line 5b? I think that will totally foul up the numbers given that I use ~20% of my home for a business and real estate taxes are prorated accordingly. So even if I subtract $350 from the federal return, only a portion of that amount will be reflected in my individual deductions. Do you have any suggestions for what I should do?
Kind regards,
Sarah
