WFCN –
The state of New York offers an opportunity for homeowners to receive a stimulus check of up to $2,000 per year through the New York School Tax Relief Program, commonly known as STAR. This program is designed to provide relief on property taxes, helping to ease the financial burden on those who qualify. If you own a home in New York, it’s important to know whether you’re eligible for this assistance and the steps needed to apply for it.
The STAR program comes in two forms: the basic School Tax Relief (STAR) and the enhanced School Tax Relief (E-STAR). Both are designed to reduce property taxes for eligible homeowners in New York. The main difference between the two programs lies in the income and age requirements for applicants.
Who qualifies for the $2,000 stimulus check?
Property tax relief can come in two ways: either as a credit issued by the state of New York or, in some cases, as an exemption on property taxes. Depending on the homeowner’s circumstances, the benefit may come in the form of a check or a direct reduction in the property tax bill.
The basic STAR program does not require applicants to meet an age requirement, which is an advantage for many younger homeowners. However, there is an income cap: the total income of all owners and their spouses residing at the property must not exceed $250,000. This limit is based on the federal adjusted gross income, subtracting the taxable amount of distributions from individual retirement accounts (IRAs).
It’s essential to note that the property must be the primary residence of at least one of the owners. Additionally, married couples who own more than one property can only apply for the benefit on one of them unless they are legally separated or divorced and can provide the appropriate documentation.
The estimated benefit for those who qualify under the basic STAR program is a property tax reduction of around $290.
The enhanced program: E-STAR for homeowners aged 65 and older
The enhanced tax relief program, known as E-STAR, is aimed at homeowners who already receive the STAR exemption and meet the age requirement of 65 or older before the exemption period begins. This option is especially beneficial for seniors looking for additional relief on their property taxes.
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In addition to the age requirement, there’s also an income limit to qualify. For the 2023 fiscal year, the combined income of all owners and resident spouses at the property must not exceed $93,200. This income limit will be adjusted for 2024, rising to $98,700.
The approximate benefit under the E-STAR program is more substantial, offering a property tax reduction of about $650.
How to apply for the STAR program stimulus check?
If you aren’t currently receiving the STAR or E-STAR property tax exemption and believe you meet the program’s requirements, the process to apply for the credit is straightforward. You’ll need to submit an application to the New York State Department of Taxation and Finance. If approved, the benefit will be sent to you as a check, providing direct relief to your finances.
For those already enrolled in the STAR or E-STAR program as a tax exemption, it’s also possible to switch to receiving the credit instead of the exemption. This switch can be advantageous because the value of the credit is subject to increases, while the exemption amount remains constant. Making the switch is recommended to maximize your long-term tax benefits.
What documentation is needed?
When applying for this benefit, you’ll need to provide certain documentation to support your eligibility. Among the most important documents are income verification for all property owners and resident spouses. Keep in mind that income is calculated based on federal adjusted gross income, with the taxable amount of IRA distributions subtracted.
If you are 65 or older and applying for the E-STAR program, you’ll need to provide proof of your age with the appropriate documentation, such as an official ID showing your birth date. Additionally, if your spouse or sibling is a co-owner of the property and meets the age requirement, you’ll need to include documentation proving their eligibility as well.
Benefits of applying for the stimulus check
Opting for the STAR or E-STAR program not only offers direct relief on property taxes but can also provide financial peace of mind. This type of economic stimulus is particularly valuable during times of inflation when the cost of living tends to be higher, and any reduction in fixed expenses like taxes is appreciated.
Moreover, the fact that the program allows certain homeowners to receive an annual check makes this assistance a form of extra income that can be used for other needs.
By applying for this program, eligible homeowners can ensure that they are taking advantage of all the benefits available to them, potentially freeing up funds that can be directed toward other financial obligations or goals.