STAR Credit Checks 2023: Check when you are likely to receive it!

If you are a homeowner in New York State, you may be eligible for a property tax relief program called the School Tax Relief (STAR) program. The STAR program provides two types of benefits: the STAR exemption and the STAR credit. The STAR exemption reduces your school tax bill, while the STAR credit is paid to you by check or direct deposit. Depending on your income and age, you may qualify for either the Basic STAR or the Enhanced STAR benefit, which offers different amounts of savings.

How to register for the STAR credit and switch from the STAR exemption

If you are a new homeowner or you have never applied for the STAR benefit before, you need to register for the STAR credit to receive your property tax relief. You can register online at the New York State Department of Taxation and Finance website or by phone at (518) 457-2036. You will need to provide your social security number, your date of birth, your income information, and your property information. You only need to register once, and you will receive your STAR credit every year as long as you are eligible.

If you are an existing homeowner who has been receiving the STAR exemption on your school tax bill, you can choose to switch to the STAR credit if you want to receive a check or direct deposit instead of a reduction on your bill. You may also be required to switch to the STAR credit if your income exceeds the limit for the STAR exemption, which is $250,000, or if you received a letter from the Tax Department that you must update your registration. To switch to the STAR credit, you need to complete a STAR credit registration online or by phone at (518) 457-2036. You will also need to notify your assessor that you no longer want the STAR exemption.

When to expect your STAR credit check and how to check the status of your payment

The Tax Department will issue your STAR credit check or direct deposit in the same year that you pay your school taxes. The timing of your payment may vary depending on your school district and county. Generally, you can expect to receive your payment between September and December. However, some payments may be issued as early as July or as late as February of the following year.

To check the status of your STAR credit payment, you can use the STAR Credit Delivery Schedule lookup tool on the Tax Department website. You will need to select your county, your school district, and your town or city. The tool will show you the date that the Tax Department began or will begin to mail STAR credit and eligibility letters to your area. Please allow five to ten business days for delivery. If you do not receive your payment within this time frame, you can contact the Tax Department at (518) 457-2036.

How much you can save with the STAR credit and how it compare to the STAR exemption

The amount of your STAR credit or STAR exemption depends on your income, your age, and the value of your home. The STAR credit can increase by up to 2% every year, while the STAR exemption cannot exceed the amount of the previous year. The Tax Department provides a table of the maximum STAR credit and exemption savings for each school district and municipality on its website. You can use this table to find the maximum amount of savings you can receive in your area. However, your actual savings may be less than the maximum amount, depending on your circumstances.

For example, if you live in Albany County, in the City of Albany, and the Albany City School District, the maximum STAR credit and exemption savings for the 2023-2024 school year are as follows:

As you can see, the STAR credit offers slightly more savings than the STAR exemption, especially for the Enhanced STAR benefit. However, the amount of your STAR credit or STAR exemption may be lower than the maximum amount if:

1. Your income is higher than the income limit for the STAR credit, which is $500,000, or the STAR exemption, which is $250,000. The amount of your STAR benefit will be reduced by 2.5% for every $2,500 that your income exceeds the limit, up to a maximum reduction of 20%.
2. Your home value is higher than the STAR savings cap, which is $305,000 for the Basic STAR benefit and $86,000 for the Enhanced STAR benefit. The amount of your STAR benefit will be reduced by the percentage that your home value exceeds the cap.
3. Your school taxes are lower than the amount of your STAR benefit. The amount of your STAR benefit cannot exceed the amount of the school taxes you pay.

What are the eligibility rules and income limits for the STAR credit

To be eligible for the STAR credit, you must meet the following requirements:

1. You must own your home and it must be your primary residence. You can only receive one STAR benefit for one property, regardless of how many properties you own or how many owners there are.
2. Your income must be $500,000 or less for the STAR credit. The income limit applies to the combined incomes of the owners and the owners’ spouses who reside at the property. Income for STAR purposes is your federal adjusted gross income minus the taxable amount of total distributions from IRAs.
3. If you are applying for the Enhanced STAR benefit, you must be 65 or older by December 31 of the year of the benefit. For jointly owned property, only one owner needs to meet the age requirement, unless the owners are married or siblings, in which case both owners need to meet the age requirement. Your income must also be $98,700 or less for the 2024 STAR credit or $93,200 or less for the 2023 STAR credit. The income limit applies to the combined incomes of all owners, regardless of residency, and any owner’s spouse who resides at the property.

What are the benefits and drawbacks of the STAR credit

The STAR credit has some advantages and disadvantages compared to the STAR exemption. Some of the benefits of the STAR credit are:

1. You can receive a check or direct deposit instead of a reduction on your school tax bill, which may give you more flexibility and convenience in managing your finances.
2. You can receive a higher amount of savings than the STAR exemption, as the STAR credit can increase by up to 2% every year, while the STAR exemption cannot exceed the amount of the previous year.
3. You do not need to reapply for the STAR credit every year, as long as you are eligible. You only need to register once, and the Tax Department will automatically review your eligibility and issue your payment every year. You also do not need to reapply for the Enhanced STAR benefit when you turn 65, as the Tax Department will automatically upgrade you to the Enhanced STAR benefit.

Some of the drawbacks of the STAR credit are:

1. You may receive your payment later than your school tax bill, which may cause some cash flow issues if you need to pay your school taxes before you receive your STAR credit.
2. You may need to switch to the STAR credit if your income exceeds the limit for the STAR exemption, or if you received a letter from the Tax Department that you must update your registration. You will also need to notify your assessor that you no longer want the STAR exemption.
3. You may not receive the full amount of your STAR credit if your income is higher than the income limit, your home value is higher than the STAR savings cap, or your school taxes are lower than the amount of your STAR credit.

Conclusion

The STAR rebate checks 2023 are a great way to save money on your property taxes in New York State. The STAR program provides two types of benefits: the STAR exemption and the STAR credit. The STAR exemption reduces your school tax bill, while the STAR credit is paid to you by check or direct deposit. Depending on your income and age, you may qualify for either the Basic STAR or the Enhanced STAR benefit, which offers different amounts of savings.

To receive your STAR benefit, you need to register for the STAR credit or switch from the STAR exemption and provide your personal information, income information, and property information. You can expect to receive your STAR credit check between September and December of the same year that you pay your school taxes. You can check the status of your payment online or by phone. You can also find out how much you can save with the STAR credit and how it compares to the STAR exemption online or by using certified tax software.

FAQs

Q: What is the STAR program?

A: The STAR program is a property tax relief program that provides two types of benefits: the STAR exemption and the STAR credit. The STAR exemption reduces your school tax bill, while the STAR credit is paid to you by check or direct deposit.

Q: Who is eligible for the STAR program?

A: To be eligible for the STAR program, you must own your home and it must be your primary residence. You can only receive one STAR benefit for one property, regardless of how many properties you own or how many owners there are. Your income must also be within the limits for the STAR benefit you are applying for.

Q: What are the income limits for the STAR program?

A: The income limits for the STAR program are:

• $500,000 or less for the STAR credit
• $250,000 or less for the STAR exemption
• $98,700 or less for the 2024 Enhanced STAR credit, or $93,200 or less for the 2023 Enhanced STAR credit

The income limit applies to the combined incomes of the owners and the owners’ spouses who reside at the property. Income for STAR purposes is your federal adjusted gross income minus the taxable amount of total distributions from IRAs.

Q: How do I register for the STAR credit or switch from the STAR exemption?

A: You can register for the STAR credit or switch from the STAR exemption online at the New York State Department of Taxation and Finance website or by phone at (518) 457-2036. You will need to provide your social security number, your date of birth, your income information, and your property information. You will also need to notify your assessor that you no longer want the STAR exemption.

Q: When will I receive my STAR credit check or direct deposit?

A: You will receive your STAR credit check or direct deposit in the same year that you pay your school taxes. The timing of your payment may vary depending on your school district and county. Generally, you can expect to receive your payment between September and December. However, some payments may be issued as early as July or as late as February of the following year.

Q: How can I check the status of my STAR credit payment?

A: You can check the status of your STAR credit payment by using the STAR Credit Delivery Schedule lookup tool on the Tax Department website. You will need to select your county, your school district, and your town or city. The tool will show you the date that the Tax Department began or will begin to mail STAR credit and eligibility letters to your area. Please allow five to ten business days for delivery. If you do not receive your payment within this time frame, you can contact the Tax Department at (518) 457-2036.

Q: How much can I save with the STAR credit or the STAR exemption?

A: The amount of your STAR credit or STAR exemption depends on your income, your age, and the value of your home. The STAR credit can increase by up to 2% every year, while the STAR exemption cannot exceed the amount of the previous year. The Tax Department provides a table of the maximum STAR credit and exemption savings for each school district and municipality on its website. You can use this table to find the maximum amount of savings you can receive in your area. However, your actual savings may be less than the maximum amount, depending on your circumstances.

Q: What are the benefits and drawbacks of the STAR credit or the STAR exemption?

A: The benefits and drawbacks of the STAR credit or the STAR exemption are:

1. The STAR credit offers slightly more savings than the STAR exemption, especially for the Enhanced STAR benefit, as the STAR credit can increase by up to 2% every year, while the STAR exemption cannot exceed the amount of the previous year.
2. The STAR credit gives you more flexibility and convenience in managing your finances, as you can receive a check or direct deposit instead of a reduction on your school tax bill.
3. The STAR credit does not require you to reapply every year, as long as you are eligible. You only need to register once, and the Tax Department will automatically review your eligibility and issue your payment every year. You also do not need to reapply for the Enhanced STAR benefit when you turn 65, as the Tax Department will automatically upgrade you to the Enhanced STAR benefit.
4. The STAR exemption reduces your school tax bill directly, which may be easier and simpler for some homeowners.
5. The STAR exemption has a lower income limit than the STAR credit, which means that more homeowners may qualify for the STAR exemption than the STAR credit.
6. The STAR exemption does not require you to notify your assessor if you want to keep the STAR exemption, while the STAR credit requires you to notify your assessor if you want to switch from the STAR exemption.

Q: What if I have questions or problems with my STAR benefit?

A: If you have questions or problems with your STAR benefit, you can contact the Tax Department at (518) 457-2036 or visit their website. You can also contact your local assessor or your school district for assistance.