MandyLuna wrote: ↑Fri Sep 16, 2022 12:10 pm
A couple of questions for those in the know:
Can anyone speak to the areas outside of Albany: Clifton Park or HalfMoon?
Just the general vibe, notable characteristics, etc.
Also with respect to property taxation:?
Income for STAR eligibility purpose is defined rather oddly: it is prior year Federal AGI minus any taxable IRA distributions. (So, in particular, Roth conversions and RMDs do not hurt eligibility for this credit as long as you are converting or distributing from a tIRA. Converting or taking a distribution directly from a tax-deferred 401k or 403b or 457, however, does affect eligibility.)
If I understand this correctly, direct distributions that are not RMDs or not converted to a Roth, do not get added to AGI for purposes of determining the value of the credit.... I realize it varies from county to county, but can you give any rough examples of how much one might save with this credit? I am wondering if its in the hundreds or thousands? I guess depends on your bill....I just need to research it further I guess.
1) The amount you save from STAR tax credits does not depend on the property value. It is a fixed dollar credit based only on your school district and your town and whether or not you have "homestead" status as an owner-occupant, and whether or not you are over 65.
So, for example, if your home is in the Niskayuna School District in the Town of Niskayuna in Schenectady County, the Enhanced STAR credit for owners over 65 was $1,253 last year, whether you lived in a $150K home or a $750K home. If your home is in the Niskayuna School District in the Town of Clifton Park in Saratoga County, just across the river, your Enhanced STAR credit was $1,602 last year, again regardless of the value of your home. You can look up the STAR credits for every town/city/school district in every county in the state here:
Those were last year's levels. They do go up a little every year. My town of Niskayuna/Niskayuna school district Enhanced STAR credit just arrived this week. It was $1,278 ($25 more than last year.) I don't know the numbers for the other school districts and town in the state though. They haven't updated the table I linked in the previous paragraph.
2) For determining whether your income is below the Enhanced STAR limit of $92K, *all* tIRA distributions are completely disregarded, no matter whether they are RMDs, Roth conversions, or whatever. On the other hand, all other tax-deferred account distributions (e.g., 401k, 403b, 457) are included in defining income.
3) In addition to the STAR above, NY politicians are fond of sometimes mailing out intermittent spontaneous surprise occasional additional tax relief checks. In addition to receiving my annual Enhanced STAR credit, I also got a surprise additional bonus check in the mail from the state labelled "Property Tax Relief," which was a percentage of my annual STAR credit. (This bonus property tax relief check is subject to the vicissitudes of the state budget process and can't be counted on to recur in the way that STAR credits are. Apparently the state was feeling flush this year. And, of course, it is an election year. The bonus tax relief checks arrived shortly before the June primary. Qualifying for this bonus check required an income under $275K *and* required that your school district did not exceed the property tax increase cap
4) Also a surprise, there was a new Property Tax Rebate Credit
quietly enacted in 2021, effective only in 2022. Getting it required me to attach a form to my NYS Income Tax. I got the maximum $350 in that credit.
So, all told, I have gotten over $2K in property tax relief credits this year, all with somewhat different qualification parameters and rules. None of the credits depended on the value of my home. If I did not qualify for any of them, my gross property taxes would run about $12K on a home which the assessor says had a FMV of about $400K as of 7/1/21. (And that FMV was probably about right for last year. FMV is likely down somewhat this year.) So my net of credits property tax cost is roughly $10K.