As of November 2024, New York State has finished distributing STAR (School Tax Relief) checks to eligible homeowners. The STAR program provides property tax relief for homeowners, helping reduce the burden of school property taxes. The program offers two types of benefits: Basic STAR and Enhanced STAR, with the Enhanced STAR providing more significant savings for senior homeowners.
In 2023, the average amount for Basic STAR recipients was $778, while those qualifying for Enhanced STAR received an average check of $1,407. It is expected that the benefit amounts for 2024 will remain similar, continuing to offer valuable financial support to homeowners who meet the program’s qualifications.
Types of STAR Benefits
New York’s STAR program offers two primary benefits for homeowners, each with its own set of eligibility rules:
Basic STAR
- Eligibility: Available to homeowners with a household income of $250,000 or less.
- Age Requirement: No age restrictions.
- Benefit: Reduces school property taxes, with 2023 recipients receiving an average rebate of $778.
Enhanced STAR
- Eligibility: Seniors aged 65 or older who meet specific income criteria.
- Benefit: Provides a more substantial property tax reduction, with the average payment for Enhanced STAR recipients in 2023 being $1,407.
The Enhanced STAR is designed to provide greater tax relief for senior homeowners, especially those on fixed incomes, offering higher savings on school property taxes.
Enhanced STAR Eligibility Criteria
To qualify for the Enhanced STAR benefit, homeowners must meet the following requirements:
- Age Requirement: At least one homeowner must be 65 years old or older by December 31, 2024.
- Residency Requirement: The property must be the homeowner’s primary residence.
- Income Limit: The combined income of all property owners must be $93,200 or less, including the income of any spouse living at the property.
The income limit is intended to ensure that the Enhanced STAR benefit targets seniors who need additional financial assistance with their property taxes.
How Income is Calculated for STAR Eligibility
Income eligibility for the STAR program is based on federal adjusted gross income (AGI), with adjustments for taxable IRA distributions. This adjusted income figure is used to determine if homeowners qualify for the program.
Steps to Verify Income Eligibility:
To determine if you qualify for Enhanced STAR, check the following on your tax forms:
- Federal Tax Form 1040: Review the adjusted gross income on line 11. Then, subtract any taxable IRA distributions from line 4B.
- New York State Tax Form IT-201: If you use this form, check your Resident Income Tax Return.
These figures will help you assess whether your income is below the $93,200 limit for Enhanced STAR eligibility.
How to Apply for the STAR Program
If you qualify for STAR but haven’t yet enrolled, it’s important to sign up. There are two simple ways to register:
- Online Registration: Visit the New York State Department of Taxation and Finance website and complete the registration process online.
- Phone Registration: Alternatively, you can call the New York State Tax Department to register by phone.
Registration is a crucial step to ensure you receive your STAR check. Only homeowners who are enrolled in the program will receive the benefit, so make sure you register if you haven’t done so already.
Key Takeaways for STAR Recipients
The STAR program offers substantial tax savings, particularly through the Enhanced STAR benefit for seniors. The program adjusts each year to reflect changes in eligibility criteria, ensuring that as many qualifying homeowners as possible can benefit.
To maximize your savings, stay up-to-date on the eligibility rules and ensure you are enrolled in the program. By doing so, you can take full advantage of the financial relief STAR offers on school property taxes.
1. What is the STAR program?
The STAR program provides property tax relief to homeowners in New York by reducing school property taxes through Basic and Enhanced STAR benefits.
2. Who is eligible for Basic STAR?
Basic STAR is available to homeowners with an income of $250,000 or less and has no age restrictions.
3. Who qualifies for Enhanced STAR?
Seniors aged 65 or older with a combined income of $93,200 or less are eligible for Enhanced STAR.
4. How do I check my eligibility for STAR?
Check your eligibility by reviewing your federal tax forms (Form 1040) or New York State tax forms (IT-201) for adjusted gross income.
5. How can I enroll in the STAR program?
You can enroll online through the New York State Tax Department’s website or by calling their office for phone registration.
