My 2022 Homeowner Tax Rebatge is not taxable for federal purposes but is for NYS. How do I subtract it from my federal itemized deductions on the NYS return?

[LindaS5247]

If you receive a check for the homeowner tax rebate credit, you do not need to do anything on your New York State income tax return unless you itemize your deductions. Learn how to report your credit.

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.

If you are a homeowner and claim property taxes as an itemized deduction on your Federal Return, you will reduce your property tax deduction by the amount of the check.

1. To edit your property tax entry in TurboTax:
2. Select the Deductions & Credits tab, 
3. Click on I'll choose what I work on. 
4. Scroll down the page in the Your Home section and click update/start on the Mortgage Interest, Refinancing, and insurance.

Click here for additional NYS information regarding the HTRC.

Click here for NYS information regarding your Homeowners Tax Rebate.

[photobug56]

Are we sure that the rebate is not taxable on Fed 1040's?  I don't plan to itemize.

[tooboys]

See NY Times https://www.nytimes.com/2023/02/27/business/economy/irs-forgo-taxes-payments.html the article will explain.

[photobug56]

Unfortunately that link is broken.

[PattiF]

This would only be included on your federal return if you itemize your deductions. If you do itemize, reduce the property tax amount by the Homeowner Tax Rebate amount. Do this by deducting the New York Homeowner Tax Rebate from the real estate taxes.

@photobug56 

[photobug56]

That's the game plan.  While the SALT cap is still in place, under my current circumstances it's not worth itemizing.  Thanks!