NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

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js2012
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Joined: Tue Dec 25, 2012 4:13 pm

NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by js2012 »

Thanks in advance for any assistance.

I'm doing my taxes and stumbled upon the NYC-208 credit for Real Property Tax Credit for Homeowners and Renters.

Here's a link to the instructions:
http://www.tax.ny.gov/pdf/current_forms/it/nyc208i.pdf

I meet all of the criteria except I don't know if my residence "was not completely exempted from real property taxes."
I'm assuming it is not exempted from real property taxes but what are "real" property taxes and how would I know if my landlords are filing them?

I live in the first floor of a multi-residence home with just the owners living in the rest.

Here are the rest of the stipulations:
To qualify for this credit, you must meet all of these conditions for tax year
2014:
• Your household gross income was less than $200,000.
• You occupied the same New York City residence for six months or more.
• You were a New York City resident for all of 2014.
• You could not be claimed as a dependent on another taxpayer’s federal income tax return.
• Your residence was not completely exempted from real property taxes.
• Additionally, you must meet all the conditions listed under either
Homeowners or Renters below:
Renters
– You or a member of your household paid rent for your residence.


I think this is a new credit starting form 2014 but I've never heard of it and I"m not quite sure if I qualify.

Thank you again for helping to wade through the legal jargon of taxes (I can't even begin to describe the stress I'm feeling lately. I'm still trying to figure out why TaxAct has me owing money to NYS and Turbo Tax is giving me a refund of about $345.) Grrrr
TIAX
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by TIAX »

Topic Author
js2012
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Joined: Tue Dec 25, 2012 4:13 pm

Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by js2012 »

Thank you for the information. I was able to find my building and it looks like property tax is being assessed. So, if I'm understanding this correctly, I do qualify for the deduction, right? This just seems too good to be true since I don't actually own anything.

Is there anyone else in NYC in a similar position (renting in a multi-family home) that is also claiming this?
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grabiner
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by grabiner »

js2012 wrote:Thank you for the information. I was able to find my building and it looks like property tax is being assessed. So, if I'm understanding this correctly, I do qualify for the deduction, right? This just seems too good to be true since I don't actually own anything.
It's not too good to be true. You indirectly pay the property taxes, as if property taxes rise, landlords will demand more rent to cover the expenses. NYC has chosen to extend the credit to both direct and indirect payers of these taxes.

NJ has a similar rule: homeowners may deduct property tax, and renters may deduct 18% of rent paid on their NJ residences.
Wiki David Grabiner
rpalmer221
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by rpalmer221 »

Hi,

I am trying to get more info on NYC-208. I too, stumbled upon this tax credit option when filing on TaxACT. I surprisingly owe to both the state and federal and see this as an option to get tax credit. It would help a lot (even if it's not much of a credit). I can't quite seem to find out whether my landlord is completely exempt from property taxes. I tried the link above and entered the address. Don't really know how to interpret the information listed. I have a similar living situation (2nd floor tenant of two-story building owned and used by the landlord). I qualify for all of the 208 stipulations, but can't seem to confirm whether or not my landlord is completely exempt from paying property taxes. I'd rather not ask him directly as there is a huge language barrier. Any idea where I could find out this info? I'd love to know if you were successful in filing this form and if it really is too good to be true. Please let me know! Thanks!!!
Topic Author
js2012
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Joined: Tue Dec 25, 2012 4:13 pm

Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by js2012 »

OP here.

I followed the link above and it seemed like property taxes were paid on the property (most likely they were paid if you are living in a residential building, from my understanding).

I had to input my address, total rent paid for the year and then indicate if it included gas, electric, water, furnishing, etc.

My apartment is 1410/month and includes gas, electricity, and water. For whatever reason, this did not qualify me for any credit.

Good luck. I'd love to know more about how the credit works as well (like at what amount would I get some credit and how the amenities are used in the calculation).
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grabiner
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by grabiner »

js2012 wrote:OP here.

I followed the link above and it seemed like property taxes were paid on the property (most likely they were paid if you are living in a residential building, from my understanding).

I had to input my address, total rent paid for the year and then indicate if it included gas, electric, water, furnishing, etc.

My apartment is 1410/month and includes gas, electricity, and water. For whatever reason, this did not qualify me for any credit.
Checking the form, it's probably because you get credit only based on property tax above a certain percentage of your income (4% if total income is under $100K). If the form was filled out electronically, you can see the calculation.
Wiki David Grabiner
MarkNYC
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by MarkNYC »

From what I've read, only about 4% of NYC properties are totally exempt from real estate tax, so almost all tenants will meet this qualification item. The credit ranges from zero to $500. However, as Grabiner noted, meeting all eligibility requirements does not automatically mean you will receive the credit, since the credit is calculated as a percentage of the excess of real estate taxes paid over a percentage of income . For tenants, 15.75% of rent (excluding utilities included) is deemed to constitute real estate tax. As an example, with income of $90K, 4% of income applies = $3,600. If rent is $2K/month, real estate tax paid is deemed to be $24K x .1575 = $3,780. The credit is 4.5% of $180 ( $3,780 less $3,600) = $8. If rent is $3K/month, the credit increases to $93. Not much to get excited about. Different ( and less credit-friendly ) percentages apply if income is over $100K, and if over $150K. Most tenants will probably get zero credit, or something close to it.
Last edited by MarkNYC on Mon Mar 02, 2015 2:12 pm, edited 1 time in total.
truenorth418
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by truenorth418 »

MarkNYC wrote:From what I've read, only about 4% of NYC properties are totally exempt from real estate tax, so almost all tenants will meet this qualification item. The credit ranges from zero to $500. However, as Grabiner noted, meeting all eligibility requirements does not automatically mean you will receive the credit, since the credit is calculated as a percentage of the excess of real estate taxes paid over a percentage of income .... Not much to get excited about.
That's for sure. I got all excited about it, and then I found out my credit was only $22. Oh well.
rpalmer221
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Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

Post by rpalmer221 »

Thanks for all the updated info from everyone..It seems most renters qualify. However, those few who actually receive tax credit must pay a considerable amount of their income towards rent. Otherwise, no credit given..It was worth a try though!
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