New York State has introduced a valuable financial relief initiative to help homeowners manage the heavy burden of school taxes: the School Tax Relief (STAR) program. This initiative, divided into BASIC STAR and Enhanced STAR, offers tax relief checks that address school tax obligations for qualifying homeowners. With the average expected benefit hovering around $1,407 per resident, the STAR program is a crucial support system that helps maintain the affordability of homeownership in New York.
Purpose
The STAR program aims to reduce the financial strain of school taxes for homeowners, adjusting its eligibility criteria and benefit amounts to reflect economic changes. Knowing the specific eligibility requirements for both BASIC STAR and Enhanced STAR is vital for homeowners considering applying for these benefits.
BASIC STAR Criteria
To qualify for BASIC STAR, the property must be the applicant’s primary residence. This means it should be where the homeowner lives most of the time.
Age
BASIC STAR is available to homeowners of any age, provided they meet the other criteria. There are no age restrictions associated with this category.
Income
For the BASIC STAR credit, the total combined income of all property owners and their spouses residing on the property must be $500,000 or less. If applying for the BASIC STAR exemption, this limit is $250,000 or less.
Ownership
Applicants must own the property. Married couples can only receive one STAR benefit per household unless legally separated. Also, homeowners purchasing through an executory contract (land contract) are considered owners for eligibility purposes. However, properties owned by corporations, partnerships, or LLCs are generally ineligible, except for certain farm dwellings.
Enhanced STAR Criteria
Like BASIC STAR, the property must be the primary residence of at least one owner who meets the age criteria for Enhanced STAR.
Age
To qualify for Enhanced STAR, all owners must be at least 65 years old by December 31 of the year they apply. If the property is jointly owned by a married couple or siblings, only one person needs to meet the age requirement.
Income
For 2024, the combined income limit for Enhanced STAR is $98,700 or less, which will increase to $107,300 in 2025. This limit includes the combined incomes of all owners, whether they live on the property or not, as well as the income of any owner’s spouse residing on the property.
Ownership
The ownership rules for Enhanced STAR are similar to those of BASIC STAR. Eligible applicants must own the property, with the same conditions applied to multiple properties and legal separations.
Special Considerations
Surviving spouses might continue to receive the Enhanced STAR benefit if they meet specific program requirements.
Corporations and LLCs
Properties owned by corporations, partnerships, or LLCs are typically ineligible for STAR benefits. The exception lies in properties used as farm dwellings, which may still qualify.
Distribution Timeline
The distribution timeline for the STAR program checks is structured to provide timely financial relief. The process begins in mid-April when the New York State Tax STAR credit website is updated with the latest eligibility criteria and income limits. By summer, funds begin to be distributed, with most checks issued by September 11.
Homeowners already enrolled in the program who have retained ownership of their properties will receive their benefits automatically, either as a direct check or as a deduction on their school tax bills.
How to Claim
If you’re looking to claim your $1,407 stimulus check through the STAR program, follow these steps:
- Confirm that your property is your primary residence and that you own it.
- Visit the New York State Department of Taxation and Finance website to complete the STAR application online.
- Alternatively, register by calling the New York State Department of Taxation and Finance.
- Gather your previous year’s state or federal tax return to verify your income.
- For Enhanced STAR, provide age verification documents such as birth certificates or driver’s licenses.
- If you’re already enrolled and still own your property, no reapplication is necessary; benefits will be automatically provided.
- Submit your application by the deadline to ensure timely receipt of your benefits.
Once your application is processed, expect your check to be mailed out starting in the summer. This financial relief can significantly ease the burden of school taxes for those who qualify.
In summary, the STAR program is a valuable tool for homeowners in New York State, providing essential tax relief that makes homeownership more affordable. By knowing and meeting the eligibility criteria, homeowners can benefit from substantial financial assistance.
FAQs
What is the STAR program?
The STAR program provides tax relief to New York homeowners.
Who qualifies for BASIC STAR?
Homeowners with a primary residence and income under $500,000.
Who qualifies for Enhanced STAR?
Homeowners aged 65+ with income under $98,700 in 2024.
How is the STAR benefit distributed?
Via direct checks or school tax bill deductions.
When are STAR checks sent out?
Most checks are issued by September 11.
