Help w/ taxes re: Basic Star credit

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sighchological
Posts: 144
Joined: Sat Feb 02, 2013 12:12 pm

Help w/ taxes re: Basic Star credit

Post by sighchological » Sat Apr 14, 2018 1:45 pm

I’m almost done with my taxes on TaxHawk. Trying to figure out if I am interpreting the Basic Star credit correctly.

In TaxHawk, under: Federal Itemized Deductions, it states:
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You must reduce your federal itemized property tax deduction by the amount of your Property Tax Relief Credit or STAR credit received in 2017 that reduced your property taxes in 2017.
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I reside in Nassau County, New York. In the Nassau County website, under 2017 school taxes, it states:

CODE: B
DESCRIPTION: Basic Star
EXEMPT AMOUNT: 130
SAVING DUE TO EXEMPTION: $1500
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I itemize my deductions, so I itemize my property taxes. The total amount of real estate taxes I itemized during 2017 was $10K. In 2017, I did not receive the Basic Star as a check, it was deducted from my school bill. Do I have to deduct the $1,500 from itemized real estate tax, leaving me with a total of $8,500 itemized real estate taxes?

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Mlm
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Re: Help w/ taxes re: Basic Star credit

Post by Mlm » Sat Apr 14, 2018 1:53 pm

If you didn't receive a check just deduct the exact amount of property taxes you paid. ($10K). Some people might get a check depending on when they purchased their home.
Reality has a way of catching up with you

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sighchological
Posts: 144
Joined: Sat Feb 02, 2013 12:12 pm

Re: Help w/ taxes re: Basic Star credit

Post by sighchological » Sat Apr 14, 2018 2:44 pm

thanks for the reply.

I purchased the house in 2013, The Basic Star was deducted from my school bill.. I believe homeowners that purchased the house in 2016 receive the Basic Star in the form of a check instead of it being automatically deducted from their school bill.. correct me if I am wrong on this.

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It states in the New York Dept of Tax and Finance website: https://www.tax.ny.gov/pit/property/rep ... redits.htm

How to report your property tax credits

If you received a check in 2017 for one or more of the following credits:

property tax freeze credit
property tax relief credit
STAR credit

you do not need to do anything on your 2017 federal and New York State income tax returns, unless you meet one of the following conditions.

You itemize your deductions

If you received any of the above credits in calendar year 2017, reduce your deduction for real estate taxes paid by the amount of all of the credits.
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If those homeowners have to reduce their deduction for real estate taxes paid by the amount of the Star credit (check), then, don't I have to deduct the Basic Star (automatically deducted from School taxes) from my real estate taxes paid? The only difference is that they received a check and I received credit.

Am i missing anything here?

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