The School Tax Relief (STAR) Program and its enhanced variant, E-STAR, are initiatives designed to provide property tax relief to eligible homeowners in New York State. Both programs can be granted as a credit by the State of New York or, in certain cases, as a tax exemption by the City of New York.
The main benefit of these programs is a significant reduction in property taxes. In the case of STAR, it is estimated that the approximate benefit is $290, while for E-STAR, the reduction can reach $650, thus providing considerable tax relief to eligible owners.
Eligibility for STAR and E-STAR Tax Credits Programs
Several key factors are considered in determining eligibility:
1. Age: There is no specific age requirement to be eligible for STAR or E-STAR. However, in the case of applying for the property tax exemption, all owners must be 65 years or older at the end of the calendar year in which the exemption begins, unless they are spouses or siblings of an owner who is 65 years or older at that time.
2. Income: An income limit is set to determine eligibility. By 2024, the total income of all homeowners and their spouses living on the property must not exceed $250,000 to qualify for the STAR credit in New York state. Income is calculated as federally adjusted gross income less the taxable amount of total distributions from annuities or individual retirement accounts (commonly known as IRAs). To receive the benefit in 2023, the income limit is $93,200 or less.
3. Primary Residence: The property for which the benefit is being applied for must be the primary residence of at least one of the owners. Married couples who own more than one property can only have STAR on one property unless they are divorced or legally separated and can provide documentation to support their claim.
Before you move forward, take into consideration that properties that receive the 421a benefit are not eligible for the STAR exemption.
How to Apply for the STAR Credit Stimulus Check in New York
Homeowners who meet the eligibility requirements and do not currently receive the STAR or E-STAR property tax exemption should file for the tax credit with the New York State Department of Taxation and Finance. If they qualify for the credit, it will be issued in the form of a check.
In addition, those who already receive STAR or E-STAR stimulus checks as a property exemption can also register to receive the credit. This option can be beneficial since the amount of the credit may increase in the future, unlike the value of the exemption that remains constant.
For more information on how to apply for the STAR credit, homeowners can visit www.tax.ny.gov/star or call (518) 457-2036.
If you are not currently benefiting from the STAR or E-STAR property tax exemption, you can file for the STAR tax credit with the New York State Department of Taxation and Finance. If you meet the requirements for this credit, you will receive the corresponding amount by means of a check issued by the authorities.
However, if you meet the criteria to apply for the tax exemption directly to the New York City Department of Finance and this application is approved, the exemption will be applied directly to your property tax bill, without a check being issued to you.