After federal stimulus funds were nearly completely halted in recent months, homeowners in New York are on the verge of receiving significant financial relief that could give them breathing room and financial flexibility. The New York School Tax Relief, known as STAR, has just been approved with stimulus checks of up to $1400.
To qualify for this $1400 stimulus check, New York residents must meet the eligibility requirements set by the state’s STAR school tax relief program. There are two main categories of eligibility, with the first being STAR Basic, which has no age restrictions but does have a household income limit. Spouses are only eligible for a single STAR credit with an income limit of up to $500,000 and a limited exemption of $250,000 for certain incomes.
The second category is Enhanced STAR, an option available only to homeowners aged 65 and older. Married couples applying must meet the requirement that the applicant be at least 65 years old by the end of the fiscal year.
Other specific provisions have also been established for cases such as surviving spouses in a widowed marriage, homeowners who no longer live on the property but are co-owners, and ongoing benefits for life trusts or lifelong estates.
Payment Dates and Stimulus Check Details
The state of New York projects that most payments approved for the New York STAR school tax relief program will be made before September of this year. These payments are specifically intended to alleviate the financial burden of school taxes for eligible households.
The $1400 stimulus check is significant assistance for homeowners, with Enhanced STAR offering an even higher average of up to $1407 compared to Basic STAR’s average of $778. Beneficiaries will start receiving these payments once they have been processed, which is expected to begin in the fall of 2024.
For more information on specific payment dates and other details related to the $1400 stimulus check in New York, beneficiaries can visit the official website of the New York Department of Taxation and Finance at www.tax.ny.gov.
On that website, they will find answers to all their questions and can review eligibility, types of STAR, STAR school tax relief extension forms, check the STAR credit delivery schedule, check their property tax credits, and more. If they are voluntarily switching to the STAR credit from exemption or have received a letter asking them to update their registration (RP-425-RMM or RP-425-RDM form), they must complete a STAR credit registration.
What is the STAR Program?
The STAR (School Tax Relief) program is an initiative that provides tax benefits to eligible homeowners in New York State. If you meet the requirements and enroll in the STAR program, you will receive aid each year in two different ways.
On the one hand, the STAR Credit gives you an annual check that you will receive by mail or by direct deposit. This credit is designed so that you can use it to pay your school taxes. To qualify, you must own your home and have it as your primary residence. In addition, the combined income of the owners and the spouses of the owners should not exceed $500,000.
On the other hand, the STAR Exemption consists of a reduction in your school tax bill. If you have been receiving this exemption since 2015 for the same primary residence, you can continue to benefit from it. As long as you remain eligible, you will see a decrease in the amount of your school taxes equivalent to the STAR exemption benefit. It is important to note that this exemption is no longer available to those who bought their home after 2015.