I receive a credit on my real estate taxes in New York called a STAR credit. I get a check each year. Is this taxable on my 1040 or IT-201?
- posted
16 years ago
STAR Credit taxable
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- posted
16 years ago
It's a rebate on the current year's school taxes.
If rebate > school tax, excess is taxable - enter on line 21.
If rebate < school tax and you itemize, itemize only the net amount of your school tax.
If rebate < school tax and you don't itemize, do nothing.
There's a discussion on this and a table of the rebates (which vary by county, township, school district, and income) on the NY website.