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Xox
Level 2

When Inputting Form 1098, do I subtract Property Tax Relief and STAR Credit from the Taxes Paid?

When I was going through TurboTax (New York State resident and new home owner, if it matters) I was inputting form 1098, and it asked for "Taxes Paid."
In section "10 Other" my lender put TAXES PAID followed by an amount, which I checked is the sum of county/town, village and school taxes by my escrow.

For now I put the full TAXES PAID from box 10 into TurboTax, but should I have subtracted the STAR Credit and Property Tax Relief from the TAXES PAID amount?

Are all 3 of those (county/town, village, and school) tax considered property taxes?

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Accepted Solutions
RobertG
Expert Alumni

When Inputting Form 1098, do I subtract Property Tax Relief and STAR Credit from the Taxes Paid?

Yes, you should reduce your taxes paid by the STAR Credit and Property Tax Relief.

 

All three (county/town, village, and school) are deductible as long as they are based on the assessed value of your property, and are not for local improvements, like streets or sidewalks.

 

Please see the TurboTax website: Can I deduct property (real estate) taxes? for further information.

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2 Replies
RobertG
Expert Alumni

When Inputting Form 1098, do I subtract Property Tax Relief and STAR Credit from the Taxes Paid?

Yes, you should reduce your taxes paid by the STAR Credit and Property Tax Relief.

 

All three (county/town, village, and school) are deductible as long as they are based on the assessed value of your property, and are not for local improvements, like streets or sidewalks.

 

Please see the TurboTax website: Can I deduct property (real estate) taxes? for further information.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Xox
Level 2

When Inputting Form 1098, do I subtract Property Tax Relief and STAR Credit from the Taxes Paid?

Thank you very much!

I do believe that all three of them are based on the assessed value of the property, because all of them have a "property identification" followed by a "total assessed value" and down in the calculation section they list that "total assessed value" against the tax rates, so that makes perfect sense to me if that's all I'd need to look at in order to know if they are based on the assessed property value.

They list "taxing purposes" like "County Water", "Fire Dist", etc. does that change anything?

Also I read your link and it says "Don't include library taxes" - on my School Tax bill there are two items under the a section called "PROPERTY TAXES". One is "SCHOOL TAX" another is "LIBRARY TAX" but both are tax rates taken against my "Taxable Assessed Value or Units" in the calculation. Should I still count the "LIBRARY TAX" as property taxes?

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