New York $2,000 STAR Stimulus Check: Homeowners in New York have a unique opportunity to save on their property taxes through the School Tax Relief (STAR) program, which can provide a stimulus check of up to $2,000 annually.
This program helps ease the financial burden on homeowners by offering either a direct credit or an exemption on property taxes.
If you own a home in New York, it’s worth knowing whether you qualify for this program and how you can apply.
STAR Types
The STAR program offers two tiers of property tax relief: Basic STAR and Enhanced STAR (E-STAR). Both aim to reduce property taxes for eligible homeowners, but they have different qualifications based on income and age. Let’s take a closer look at how each program works.
Basic STAR
The Basic STAR program is accessible to most homeowners in New York, with no age limit. However, it does come with an income restriction:
the total income of all homeowners and their spouses living at the property must be under $250,000. Importantly, this income limit is based on federal adjusted gross income (AGI), with IRA distributions subtracted.
Another key requirement is that the property must be the primary residence of at least one of the owners. If you and your spouse own multiple properties, you can only apply for STAR benefits on one property unless legally separated or divorced, provided you have the necessary documents.
Homeowners who qualify for Basic STAR can expect a property tax reduction of around $290.
Enhanced STAR (E-STAR)
For homeowners aged 65 or older, the Enhanced STAR (E-STAR) program provides additional relief.
To qualify, you must meet both the age and income requirements. You or another property owner must turn 65 before the start of the exemption period. The income limit is $93,200 for 2023, and it will rise to $98,700 for the 2024 fiscal year.
E-STAR offers more significant savings than Basic STAR, with an average property tax reduction of approximately $650. This program is particularly helpful for seniors who face rising living costs but want to lower their property tax burden.
Applying for the STAR Program
If you believe you’re eligible for either the Basic STAR or E-STAR program, applying is simple. Applications must be submitted through the New York State Department of Taxation and Finance. Once approved, homeowners will receive their benefit in the form of a check, providing direct financial relief.
For homeowners already enrolled in the STAR exemption program, it’s possible to switch to receiving the benefit as a credit. The credit may increase over time, while the exemption amount remains fixed, making the switch advantageous for long-term savings.
Required Documentation
When applying for the STAR program, you’ll need specific documents to prove eligibility. For Basic STAR, you’ll need to verify income for all owners and resident spouses. Income is calculated using federal adjusted gross income, excluding the taxable portion of IRA distributions.
For the E-STAR program, proof of age is also required. You can provide an official document, such as a government-issued ID, to confirm your birthdate. If the property is co-owned with a spouse or sibling who meets the age requirement, they must also provide age verification.
Why Apply for STAR?
Taking advantage of the STAR or E-STAR program can lead to significant financial savings, especially during periods of economic uncertainty or inflation. Reducing property taxes gives homeowners more disposable income, which can be used for other financial needs or goals.
Receiving the benefit as an annual check essentially acts as extra income, providing a cushion for unexpected expenses or helping with day-to-day living costs.
By applying for STAR, you’re ensuring you benefit from available tax relief and setting yourself up for financial peace of mind.
STAR and E-STAR Benefits Overview
| Program Type | Age Requirement | Income Limit (2023) | Income Limit (2024) | Estimated Tax Reduction |
|---|---|---|---|---|
| Basic STAR | None | $250,000 | $250,000 | $290 |
| Enhanced STAR | 65+ | $93,200 | $98,700 | $650 |
New York homeowners should explore their eligibility for the STAR program to secure valuable tax relief, especially if they’re dealing with financial pressures. This program offers a practical way to lower one of the biggest household expenses: property taxes.
FAQs
Who can apply for Basic STAR?
Any homeowner with an income below $250,000.
How much tax relief does E-STAR offer?
E-STAR provides around $650 in property tax relief.
Is there an age requirement for Basic STAR?
No, there’s no age requirement for Basic STAR.
What’s the income cap for E-STAR in 2024?
The income limit will be $98,700 for E-STAR in 2024.
Can I switch from an exemption to a credit?
Yes, you can switch from receiving the exemption to a credit check.
