State tax filing
TurboTax will automatically fill out form IT-229 if you qualify for the credit based on the entries you make on the screens of the New York return. If you qualify for the credit in 2023 and your return has been accepted by NYS without the credit, then you have to amend your state return to take the credit.
To be eligible for this credit, you must meet all the following requirements in 2023 as per the IT-229 instructions:
- you are a New York State taxpayer ;
- you were a New York State resident for all of the tax year;
- you owned real property that:
- was your primary residence for six months or more of the tax year, and
- received the STAR benefit as either an exemption or a credit;
- any rent you received from nonresidential use of your residence was 20% (0.2) or less of the total rental income you received**;
- you paid the real property taxes on the property fully or partially; and
- your qualified gross income was $250,000 or less.
**NOTE: This question can be tricky. If no rental income was received, you must answer Yes during the interview for the third question on the screen, Claim for Real Property Tax Relief Credit. Please see the screenshot below for further clarification.
For instructions on amending your state return, click here. You will get to the screen, Claim for Real Property Tax Relief Credit (IT-229), as you go through the screens of your NY return. Answer accordingly and the credit should populate on your amended return.
