IT229 NYS Property Tax Relief Credit

[samnick259]

Hi, I am not sure why I haven't seen this credit before if it is for 2021-2023. Anyhow I am a little confused about applying for it. I have not received any star rebate checks in 2023 but I do have a reduction credit on my tax bill.

However in the  instruction form for IT299 Part3 Schedule B Column 3 it states "Do not include ant STAR exemptions listed on your tax statement"

Any clarity would be appreciated

[JohnW152]

To receive a STAR exemption, you must have received it in 2015. If you weren't receiving the STAR exemption on your property in 2015, you aren't eligible to receive it now.

Since you apparently don't have a STAR exemption, then, if you otherwise qualify for the credit (see requirements below), you would need to have received a STAR credit in 2023.

You'd probably know if you were getting the STAR credit, since you need to register to qualify.  See Register for the Basic and Enhanced STAR credits. 

However, to see if you received a STAR credit, you can look up property tax credits previously paid to you on the Department of Taxation and Finance's Property Tax Credit Lookup tool.

According to the Instructions for Form IT-229, Real Property Tax Relief Credit, to be eligible for this credit, you must meet all the following requirements:

• you are a New York State taxpayer who, for the purposes of this credit, is required to file a return under Tax Law Article 22;
• 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.

[Opus 17]

"To receive a STAR exemption, you must have received it in 2015. If you weren't receiving the STAR exemption on your property in 2015, you aren't eligible to receive it now."

I don't think that's quite correct.  The STAR program is still around.  What happened is that,

• if you were in STAR before 2015, your property taxes were reduced (credit on your property tax bill)
• if you enrolled in STAR after 2015, you pay the full property tax, and then you get a rebate check in the Fall.

https://www.tax.ny.gov/star/

This new property tax relief credit on form IT-229 is new since I moved out of New York, so I don't quite know what it is for.  But the instructions say your property must be enrolled in the STAR program either via the credit or the rebate check.  Which it sounds like you are.

So your question is how to figure the credit.  On this form you list the total property taxes you paid for 2023.  Then, if you got a STAR rebate or credit not on your tax bill, you list that and it gets subtracted from what you paid, to arrive at the net amount you paid.  You ignore the credit if it was already on your tax bill, because you already didn't pay it.

In other words, something like this:

John's property tax bill was $5000.  John received a STAR rebate of $400.  John's net property tax that is qualified for this new credit is $4600.

Mary's property tax bill was $5000 with a STAR credit of $400, so Mary only paid $4600.  Mary did not get an additional rebate.  Mary's net property tax that is qualified for this new credit is $4600.  If Mary listed the STAR amount again, then the form would calculate her eligible property tax for the credit as $4200, which is too low.  So Mary should ignore the STAR credit on her tax bill because she already paid the reduced amount and does not need to reduce it again.

Does that make sense?