If you live in New York, you could be in with a chance for a big windfall – provided you meet the necessary criteria.
STAR Stimulus Check
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Tax season is over, and that means the benefits are beginning to roll in for those who are eligible. Residents of the Big Apple might be seeing an average check worth $1407 in their mail in the upcoming weeks – provided they are registered.
Understanding the School Tax Relief Program (STAR)
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The check is courtesy of the School Tax Relief Program (STAR), organized by the New York Department of Taxation and Finance. It’s essentially a rebate for homeowners meant to offset part of their school tax bill.
Ways to Receive Your STAR Stimulus Check
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There are two ways you may receive your STAR stimulus check.
STAR Credit
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STAR Credit: If you’re eligible for the STAR credit, the Tax Department will send you money to help pay your school taxes. They will either send you a check or deposit the money directly into your account.
STAR Exemption
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STAR Exemption: This gives you a discount on your school tax bill. If you’ve been getting the STAR exemption since 2015, you will keep getting it for the same home as long as you are eligible. This discount lowers your school tax bill by the amount of your STAR exemption. Just know new homeowners can’t apply for the STAR exemption anymore.
Levels of Support
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There are two levels of support available through the STAR program – basic and enhanced – and the amount you will receive as a rebate depends on your household income.
Prior Payments
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Last year, the basic STAR check was $778, and the enhanced payment was $1407, but this year, the payments are expected to be more generous.
Determining Your STAR Check Value
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The amount you will receive depends on a few things – namely the tax class of your home, as well as which county you live in and certain other factors.
Types of Properties Eligible for Tax Relief under STAR
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Most homes are eligible for tax relief – houses, farmhouses, apartment buildings, condominiums, and more.
Eligibility Factors
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If your annual household income is under $500,000 and you own and occupy your home, you will be eligible to receive a STAR credit rebate that removes a percentage of your home value from school property tax.
Income Thresholds
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If you earn less than $200,000 a year, you might qualify for STAR Exemption, which lowers your tax bill. This benefit has been available since 2015, but if you bought your home after that, you can’t get it.
A Word Of Warning
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Be careful: if you cancel the exemption to get a tax credit, you can’t get the exemption back later.
Enhanced STAR Program
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The enhanced program is for homeowners aged 65 and older. To qualify, at least one owner must live in the home, and the combined household income must be $98,700 or less. The credit is worth more than the Basic STAR program for eligible families.
Combined Household Income Considerations
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This income figure includes the income of all property owners, even if they don’t live there. For example, if you share a property with siblings and one of them is over 65 and lives there, but together you all make more than $93,200, you’d only qualify for Basic STAR.
Complex Calculations
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It’s calculated by taking away the taxable part of the money you get from retirement accounts from your overall income on your federal tax return.
Limitations
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The Basic STAR credit doesn’t have an age limit to apply, but it does have an income limit per household ($500k). Married couples can only apply for one STAR credit, even if they own multiple properties – unless they’re legally separated.
Deadline Alert
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Unfortunately, if you have not yet signed up for the STAR rebate, you have missed your chance this year – but there is always next year!
Planning for Next Year
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Sign up before tax season; otherwise, a check won’t be issued to you, and there is no way to claim one belatedly.
Summer Delivery
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If you are waiting for a check, you can expect to see it come through the post in the next few months. Most people will have theirs by summer, but some could be waiting until September 11th at the latest for their checks.
The post Thousands in NY to Receive $1407 Through STAR Program first appeared on Mechanic Insider..
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
