No, the NY Homeowner Tax Rebate Credit (HTRC) is not taxable income, but if you itemize and claim your property taxes as a deduction, you must reduce the deduction for property taxes by the amount of your rebate.
From the New York State Department of Taxation and Finance:
"If you itemize your deductions, reduce your itemized deduction for real estate taxes paid by the total amount of any STAR credit and the homeowner tax rebate credit received during the tax year; keep your check stubs with your tax records."
For example, If you paid $3800 in property taxes and received a rebate of $1000, you would deduct $2800 instead of the full amount.
If you itemized and entered your property taxes with your 1098-INT, this is how to find it:
- Select Federal from the left side menu.
- Select Deductions & Credits.
- Scroll down to Mortgage Interest and Refinancing (Form 1098).
- Click Edit/Add to the right.
- Click Edit to the right of your 1098 entry.
- Click Continue until you get to the page that says, Let's get the details from your 1098, at the top.
- Below box 5 you will see a box for Property (real estate) taxes.
- You can edit this amount here.
If this box is blank, or you entered the amount directly in the property tax section:
- Select Federal from the left side menu, then Deductions & Credits.
- Expand the list and scroll down to Property (Real Estate) Taxes.
- Click Edit to the right.
- You can edit the number here.
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