$1,400 Average Payments – All Issued to Residents of New York State

For homeowners in New York State, the STAR (School Tax Relief) check provides much-needed assistance to help manage school tax expenses. Issued annually, the STAR program offers two primary types of checks: the Basic STAR and the Enhanced STAR, each tailored to specific homeowner needs and financial situations. As of November 2024, all STAR checks for eligible homeowners have been sent out, delivering relief to thousands across the state.

Let’s go through the STAR program’s key features, eligibility requirements, and application process to ensure you can qualify for this valuable benefit.

STAR Benefits

The STAR program is available to homeowners who meet specific income and residency criteria, with two categories offering varied benefits:

1. Basic STAR: This is for homeowners with an income below $250,000. It provides a school tax exemption that lowers the amount due on property tax bills.
2. Enhanced STAR: Specifically for seniors, the Enhanced STAR offers greater benefits for homeowners aged 65 or older, with qualifying income limits.

In 2023, the average Basic STAR benefit was approximately $778, while the Enhanced STAR check provided a higher average benefit of $1,407. This increase in aid reflects the program’s intention to support seniors and those with higher property tax burdens, especially during challenging economic times.

Eligibility Requirements

The Basic STAR exemption is relatively straightforward:

• Income Limit: The homeowner’s income must be less than $250,000. This limit is based on the total adjusted gross income of the homeowner(s).
• Age Requirement: There is no age restriction for Basic STAR.
• Primary Residence: The property must be the homeowner’s primary residence.

Enhanced STAR

Enhanced STAR is designed to offer greater support for senior homeowners. To qualify, applicants must meet stricter criteria:

1. Age Requirement: At least one property owner must be 65 or older by December 31, 2024. If the property is co-owned, such as between spouses or siblings, only one owner needs to meet the age requirement.
2. Primary Residence: The property must serve as the owner’s primary residence.
3. Income Limit: The household’s combined income must not exceed $93,200. This includes the income of all owners, whether or not they reside at the property, as well as any spouse of an owner who lives on the property.

These criteria ensure that Enhanced STAR benefits reach seniors with limited income, providing an added level of property tax relief.

STAR Eligibility

For Enhanced STAR, eligibility is based on your federal adjusted gross income (AGI), with specific exclusions. To calculate your income accurately for the 2024 STAR exemption:

• Start with AGI: Look at Line 11 on Federal Form 1040.
• Subtract IRA Distributions: Exclude the taxable portion of IRA distributions, found on Line 4B of the same form.

In New York, the adjusted gross income for STAR eligibility is calculated using your 2022 federal or state tax return. If you’re unsure about meeting the income requirements, this calculation can help clarify your eligibility.

How to Apply

If you’re eligible but haven’t yet enrolled in the STAR program, registration is a straightforward process. Here’s how you can apply:

• Online Registration: Go to the New York State Department of Taxation and Finance website, where you can complete the application online.
• Phone Registration: Alternatively, you can call the STAR hotline at (518) 457-2036 for assistance with the application.

Enrollment is essential to receive future STAR benefits, as checks will only be sent to registered participants.

Why STAR Benefits Matter

The STAR program, and especially the Enhanced STAR exemption, serves as a vital support for New York homeowners by helping reduce their property tax burdens. Many New York residents, including retirees and seniors on fixed incomes, find these checks critical for managing their expenses. With inflation affecting many aspects of daily living, these checks can help offset rising costs and provide some financial security.

The Enhanced STAR exemption also has specific provisions for seniors, recognizing that this demographic often faces unique financial challenges. By ensuring income limits are met and making timely adjustments, the STAR program aims to provide long-term tax relief that benefits thousands of New York households.

Addressing the eligibility requirements, income calculations, and application process ensures that eligible homeowners can maximize their benefits from the STAR program. Whether you’re receiving the Basic or Enhanced STAR check, staying informed about your eligibility will help you make the most of this valuable state benefit.

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