For many homeowners in New York, property taxes can be a big expense. Fortunately, the STAR (School Tax Relief) program offers help by providing a check each year to ease school tax costs. The STAR program has two main types of benefits: Basic STAR and Enhanced STAR. These benefits are designed to support different homeowners based on their income and needs. As of November 2024, all eligible New York residents should have received their STAR checks.
Let’s look at how the STAR program works, who qualifies, and how to apply if you haven’t yet.
What is the STAR Program?
The STAR program is a tax relief benefit available for New York homeowners to help reduce school tax expenses. Here are the two types of STAR benefits:
- Basic STAR: Available to homeowners with a combined income below $250,000. This benefit lowers the property tax bill for eligible residents.
- Enhanced STAR: Specifically for senior homeowners, age 65 or older, with an income below $93,200. This check offers more financial help to seniors facing high property taxes.
In 2023, the Basic STAR check averaged around $778, while the Enhanced STAR benefit averaged $1,407. These payments are especially helpful during times of rising living costs.
STAR Program Payment Amounts Table
| STAR Type | Eligibility Criteria | Average Benefit Amount |
|---|---|---|
| Basic STAR | Income < $250,000 | $778 |
| Enhanced STAR | Income < $93,200; Age 65+ | $1,407 |
Eligibility Requirements for STAR
The Basic and Enhanced STAR programs each have unique requirements:
Basic STAR
- Income Limit: The household income must be below $250,000.
- Primary Residence: The property must be the homeowner’s main residence.
- Age Requirement: No age requirement for this benefit.
Enhanced STAR
- Age Requirement: At least one owner must be 65 years or older by the end of the year.
- Primary Residence: The property must be the primary residence of the homeowner.
- Income Limit: The combined income must be below $93,200.
These guidelines ensure that both general homeowners and seniors receive property tax relief based on their specific needs.
How Income is Calculated for STAR
For Enhanced STAR, income eligibility is based on the federal adjusted gross income (AGI) shown on your tax return. To determine your eligibility:
- Start with AGI: Look at Line 11 on your IRS Form 1040.
- Subtract IRA Distributions: Exclude any IRA distributions listed on Line 4B.
If you’re not sure if you qualify, checking these details on your 2022 tax return can help.
How to Apply for STAR Benefits
If you’re eligible but not yet registered, applying for the STAR program is simple. Here’s what to do:
- Online: Visit the New York State Department of Taxation and Finance website and complete the online application.
- By Phone: Call the STAR hotline at (518) 457-2036 for assistance.
Once registered, you’ll receive your STAR check annually, as long as you remain eligible.
Why STAR Benefits Are Important
The STAR program is crucial for New York homeowners, especially seniors. It provides relief for families, retirees, and those on fixed incomes who rely on these checks to manage their monthly expenses. The Enhanced STAR is particularly helpful for older adults, recognizing that they often face unique financial challenges. By meeting income limits and age requirements, New York residents can use this program to reduce their financial burden.
FAQ’s
Who can qualify for the Basic STAR program?
Anyone who owns a home in New York, has a primary residence there, and has an income under $250,000 qualifies for Basic STAR.
Is Enhanced STAR only for seniors?
Yes, Enhanced STAR is designed for homeowners aged 65 or older who meet specific income requirements.
How do I apply for STAR benefits?
You can apply online through the New York State Department of Taxation and Finance or by calling the STAR hotline.