NY State Credit

[BabyJake]

Turbo Tax has a screen where you input the Star Credit however it does not automatically reduce the amount of property taxes by this amount on the NYS Itemized deduction schedule.  

[LenaH]

It is not supposed to reduce your property taxes on the NYS itemized schedule. The amount of property tax deducted flows from your federal return and you were supposed to already have adjusted your total property taxes for the STAR credit during the input on the federal screens. The amount deductible on your Schedule A is your total property taxes less any applicable credits/refunds. 

[BabyJake]

Thanks so much.is the amount of the STAR credit applied anywhere in the program or is it there for informational purposes..

[LenaH]

It is used for informational purposes and for Form IT-119, if applicable. If you receive a notice from the Tax Department stating that your estimated STAR credit advance payment check resulted in an underpayment to you of the STAR credit, you may file Form IT-119 with your New York State personal income tax return (Form IT-201 or IT-203) to claim a refundable credit for the underpayment amount. The entire underpayment amount, as shown on the notice from the department must be claimed for the tax year in which the underpayment occurred. 

@BabyJake

[BabyJake]

Thanks so much.  This is very helpful!

[BabyJake]

I received a1099 B for the sale of some RSU's which I had received from my employer.  The original 1099B did not have the cost basis but the  supplemental 1099B did have the cost basis information.   Is my understanding correct that since I have the cost basis, I do not need to indicate it is sale of stock from my employer.   If I answer yes to that question, it requires me to add much more information re multiple lots and that info is not readily available.  It is not sale of ISO's or ESPP.  The 1099B indicates it should be reported with BOX E checked, a long term transaction for which basis is not reported to the IRS.    Thanks so much.  

[ThomasM125]

You don't necessarily need to indicate that it is the sale of company stock but you do need to account for any income from the sale that is reported on your W-2 form in box 1. When the shares vested, the fair market value of them should have been reported on your W-2 as income in that year. When you report the 1099-B form that reports the sale of the shares, you need to make sure the cost basis reflects the income reported on your W-2 form, otherwise you will be double taxed on it. Often, you need to adjust the cost basis reported on your form 1099-B to add the income reported on your W-2. You will see an option to do this in TurboTax after you enter the form 1099-B.

In rare cases, the W-2 won't reflect the income from the vesting, and in that case you would need to report the shares as company stock in TurboTax to report that income. Keep in mind that the vesting may have occurred in a prior year so you may need to look on prior year W-2 forms to find the income from the vesting.