NYS IT-229 Real Property Tax Relief Credit - What is Penalties and interest paid on the residence?

[dasrust]

I live in a co-op and qualify for the STAR credit already. Trying to see if I qualify for the new tax relief credit. Looking at Part 3 Schedule B I assume box B is the property taxes I pay by way of my maintenance fee? Is box C the sum total of mortgage interest I pay for my own mortgage as well as the co-ops underlying mortgage interest which is paid via my monthly maintenance?

[LenaH]

Yes.  Box B is your total property taxes paid via your maintenance fee. Box C is the total mortgage interest that you paid, which would include mortgage interest for common areas paid via your monthly maintenance fee. Please also ensure you enter your STAR credit in Box D. 

To be eligible for this credit, you must meet all the following requirements:

• you are subject to tax under Tax Law Article 22;
• you were a NYS resident for all of the tax year;
• you owned and primarily resided for six months or more of the tax year in real property that received the STAR exemption or that qualified you for the STAR credit;
• any rent you received from nonresidential use of your residence was 20% or less of the rental income;
• you are the one that paid the real property taxes on the property fully or partially; and
• your qualified gross income must be $250,000 or less.

[dasrust]

Thank you. Entering my numbers into the worksheet results in '0' for line 9, which after automated calculations gives me a negative value for lines 13 and 14 in Part 4. Which seems to make me ineligible. I assume this is something to do with not having paid enough property taxes in comparison to my mortgage interest to be eligible (e.g. NY State thinks I'm already getting a big enough deduction from my interest payments so I don't qualify for this extra tax break)?

[LenaH]

In order to see what is happening with your IT-229 and answer your question, it would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@dasrust

[taxquestion1011]

I don't know if this will change your results @dasrust , but Box C does *not* include mortgage interest, and it is only for interest you would have paid on late property taxes (think late payments and fees/penalties), to a town or municipality -- not to a bank due to a mortgage.

[MZ1010]

Hello, when I apply for New York State property tax relief credit, do I have to deduct the NYC property tax rebate credits that I received from the total property tax I paid for the tax year 2022?

Thank You

[ThomasM125]

I think what you mean is you want to deduct property taxes on your tax return and you are asking if you need to reduce that deduction by the amount of your property tax credit. If so, then yes, you do need to deduct the credit from your property tax when you apply the deduction on your tax return.