Deductions & credits

You have to deduct your STAR refund from your total property tax deduction on Schedule A (if you itemize). The amount on your Schedule A should be your total property taxes less your STAR credit. This will also flow to your New York State return. 

In addition, you have to enter the amount of your STAR credit on the New York screen Tell us if you received one of these New York tax breaks in 2021. This is for purposes of Form IT-119, which is used to claim a credit of a STAR underpayment.  I have attached a screenshot of the screen for additional guidance.