Through the New York School Tax Relief Program, or STAR, homeowners can get a stimulus check of up to $2,000 per year. For people who apply, this program is meant to lower their property taxes and make their finances easier. It is important for New York homeowners to know if they can get this help and what they need to do to ask for it.
It comes in two different types: the basic School Tax Relief (STAR) and the improved School Tax Relief (E-STAR). Both are meant to lower property taxes for New York homes who qualify. The biggest difference between the two programs is how much money applicants must have and how old they must be.
Who qualifies for the $2,000 stimulus check?
There are two ways to get help with your property taxes: the state of New York can give you a credit, or you may be able to get your taxes canceled. There are different ways for homeowners to get the benefit, such as getting a check or having their property tax bill lowered directly.
Applicants to the basic STAR program don’t have to be a certain age, which is good for many younger homes. But there is a limit on how much money the owners and their wives who live in the property can make together.
The total income cannot be more than $250,000. This limit is calculated by taking the federal adjusted gross income and subtracting the amount of taxable income from IRA payments.
It’s important to remember that at least one of the owners must live in the house as their main home. Additionally, married people who own more than one home can only apply for the benefit on one of those homes unless they are legally split or divorced and can show proof.
People who apply for the basic STAR program can expect to save about $290 a year on their property taxes.
The enhanced program: E-STAR for homeowners aged 65 and older
The E-STAR program, which offers more tax breaks, is for homeowners who already get the STAR exemption and are 65 years or older before the exemption time starts. This choice is especially good for adults who want extra help with their property taxes.
Besides being a certain age, you also have to make a certain amount of money to apply. All owners and resident spouses at the house must not make more than $93,200 in income during the fiscal year of 2023. This cap on income will change in 2024, going up to $98,700.
With an estimated benefit of about $650 in property tax cuts through the E-STAR program, the benefit is more serious.
How to apply for the STAR program stimulus check?
The process to apply for the credit is easy if you don’t already get the STAR or E-STAR property tax exemption and think you meet the program’s standards. The New York State Department of Taxation and Finance will need you to fill out an application. If you are accepted, the benefit will be sent to you as a check, which will help your finances right away.
People who are already in the STAR or E-STAR program to get a tax break can switch to getting the credit instead of the exemption. Because the value of the credit can go up while the amount of the exemption stays the same, this move can be helpful. To get the most out of your long-term tax benefits, you should make the move.
What documentation is needed?
Your application for this benefit will be checked by the documents you bring with you when you apply. Income proof for all property owners and resident spouses is one of the most important papers. Remember that your income is figured out by taking your federal adjusted gross income and subtracting the amount of IRA payments that are taxed.
If you are over 65 and want to apply for the E-STAR program, you will need to show proof of your age with the right paperwork, like a valid ID that has your birthdate on it. In addition, you’ll need to include proof that your spouse or sibling is eligible if they are a co-owner of the property and meets the age standard.
Benefits of applying for the stimulus check
Choosing the STAR or E-STAR scheme can not only lower your property taxes but also give you peace of mind about your money. When prices are going up because of inflation, this kind of economic boost is especially helpful. During these times, any drop in fixed costs like taxes is welcome.
Some homeowners can also get a yearly check from the program, which makes this help a source of extra money that can be used for other things.
Homeowners who are qualified can make sure they are getting all the benefits they are entitled to by applying for this program. This could free up money that can be used for other financial obligations or goals.