As of November 2024, New York State has completed issuing STAR (School Tax Relief) checks to eligible homeowners.
The STAR program is designed to offset school property taxes for qualifying residents, offering two tiers of benefits: Basic STAR and Enhanced STAR. These exemptions provide crucial financial relief, with the Enhanced STAR offering particularly valuable savings for senior homeowners.
In 2023, the average amount received for the Basic STAR was $778, while the Enhanced STAR recipients saw an average check of $1,407.
For 2024, these amounts are expected to be similar, continuing to provide much-needed support to New Yorkers with qualifying properties. If you haven’t received yours yet, it should be on its way in the coming weeks.
Types of STAR Benefits
New York State offers two primary STAR benefits to homeowners, each with its own eligibility criteria:
Basic STAR
- Eligibility: Homeowners with incomes under $250,000.
- Age Requirement: No age restrictions.
- Benefit: Provides a reduction in school property taxes, averaging $778 in 2023.
Enhanced STAR
- Eligibility: Seniors aged 65 or older with incomes meeting specific requirements.
- Benefit: Greater reduction in property taxes, with an average payment of $1,407 in 2023.
Enhanced STAR is geared specifically toward senior homeowners who meet additional income and residency criteria, providing significantly higher savings on property taxes. This can be a substantial financial benefit for seniors on fixed incomes.
Eligibility for Enhanced STAR
To qualify for the Enhanced STAR benefit, homeowners must meet the following criteria:
- Age Requirement: At least one homeowner must be 65 years old or older by December 31, 2024.
- Residency Requirement: The property must be owned and used as the primary residence.
- Income Limit: Combined income of all property owners must be $93,200 or below, including any spouse who lives on the property.
The income limit ensures that Enhanced STAR benefits are targeted toward seniors who are most likely to need additional financial relief on their school taxes.
Calculating Income for STAR Eligibility
The STAR program calculates income eligibility based on the federal adjusted gross income (AGI), subtracting any taxable distributions from IRAs (Individual Retirement Accounts).
This adjusted income figure is used to determine if homeowners meet the income requirements.
Steps to Verify Income Eligibility
To check your eligibility for the Enhanced STAR exemption:
- Federal Tax Form 1040: Look at your adjusted gross income on line 11. Then, subtract the taxable portion of IRA distributions from line 4B.
- New York State Tax Form IT-201: Refer to your Resident Income Tax Return if you use this form.
Checking these lines on your tax forms can help you determine if you fall below the $93,200 income threshold for Enhanced STAR eligibility.
How to Enroll in the STAR Program
If you meet the criteria but haven’t yet enrolled in STAR, now is the time to do so. Enrolling in STAR is straightforward, with two primary options:
- Online Registration: Visit the New York State Department of Taxation and Finance website and complete the registration online.
- Phone Registration: Call the New York State Tax Department directly to complete registration over the phone.
Registration is essential to receiving your STAR check, as only enrolled homeowners are eligible for the payment. Without registering, you will not receive a STAR check.
Key Takeaways for STAR Recipients
For eligible homeowners, the STAR program offers substantial savings on school property taxes, particularly through the Enhanced STAR benefit for seniors.
The program also adjusts each year to reflect changes in eligibility requirements, ensuring that the maximum number of qualified residents can receive the benefit. Staying informed on STAR requirements and ensuring that you’re enrolled are essential steps to maximize your property tax savings.
