The Property Tax Freeze Credit is not federally taxable. New
York mailed out advance payment of the Property Tax Freeze, Property Tax
Relief and STAR Credits to qualified taxpayers. The Property Tax Freeze
Credit amount was based on the amount of increase in local property
taxes on primary residence.
You will report the receipt of the
advance payment on your New York State tax return in TurboTax. At the
"Let us know if you got one of these New York tax breaks in 2016"
screen, respond yes and report the amount of the Property Tax Freeze in
the first box. If you got a check related to Star credit, enter that
amount in the second box.
You do not need to do anything on your
2016 federal and New York State income tax returns, unless you meet one
of the following conditions:
1. If you are a Yonkers resident,
be sure to answer Yes to the question "Did you receive a property tax
freeze or property tax relief credit?" and enter the total amount
received in the space provided. This will reduce your Yonkers tax due
appropriately.
2. If you itemize your deductions and you received any of the above credits in calendar year 2016, you will reduce
your deduction for real estate taxes paid by the amount of all of the credits.
If
you receive a property tax credit in 2017, keep the check stub with
your 2017 tax records. You will adjust your 2017 real estate tax
itemized deduction by the amount of the credit.
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