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You have to deduct your STAR refund from your total property tax deduction on Schedule A (if you itemize). The amount on your Schedule A should be your total property taxes less your STAR credit. This will also flow to your New York State return.
In addition, you have to enter the amount of your STAR credit on the New York screen Tell us if you received one of these New York tax breaks in 2021. This is for purposes of Form IT-119, which is used to claim a credit of a STAR underpayment. I have attached a screenshot of the screen for additional guidance.
Your answer is very clear, BUT, if I already reduced my property tax reporting on the federal form, and NY portion imported that already reduced value; then providing the value of the Star Credit on the NY form appears to be applying Double the Start credit?
No, because that question is to see if you were underpaid for your advance payment Star Credit, and give you a chance to file Form IT-119 and get the underpayment now, or have your next advance payment adjusted to reconcile any underpayment amount. It doesn't affect your NY State Income taxes.
Reducing your Property Tax Deduction on the federal side by the amount of your Star Credit is making sure that you are only claiming the net amount of Property Tax actually paid.
They are two separate issues.
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