New York State has implemented a substantial benefit through the School Tax Relief (STAR) program to provide financial relief to homeowners burdened by school taxes. This program, segmented into BASIC STAR and Enhanced STAR, provides tax relief checks that directly address the school tax obligations of eligible homeowners.

With an average expected stimulus check of $1,407 for enrolled residents, the program represents a vital financial support mechanism that helps maintain the affordability of homeownership in New York State. The STAR program aims to mitigate the impact of school taxes on homeowners and adapts to economic changes by adjusting eligibility criteria and benefit amounts accordingly.

Who gets a $1,407 stimulus check?

New York State’s School Tax Relief (STAR) program is designed to help homeowners manage the costs associated with school taxes through the BASIC STAR and Enhanced STAR exemptions. Understanding the eligibility criteria for each category is crucial for applicants to determine if they qualify for the benefits.

New to the School Tax Relief (STAR) program: STAR Loan recipients can now have their STAR Loan payments deposited directly into their bank account. Recipients can enroll through the IRS’s secure Homeowner Benefit Portal: https://t.co/nmOVmBlKxy photo.twitter.com/Nsqd3fuJpZ

— New York State Tax Department (@NYSTaxDept) May 17, 2024

BASIC STAR Admission Criteria

• Residence: The property must be the applicant’s primary residence. It must be where the homeowner lives most of the time.
• Age: There are no age restrictions for the BASIC STAR program. It is open to homeowners of any age if other criteria are met.
• Income: The income limit is $500,000 or less for the STAR credit and $250,000 or less for the STAR exemption. This limit applies to the combined incomes of all property owners and the owners’ spouses who live there.
• Property: The property must be owned by the applicant(s). Married couples are eligible for only one STAR benefit per household, with an exception for those who are legally separated. Homeowners who purchase through an executory contract (land contract) are also considered owners for eligibility purposes. However, property owned by corporations, partnerships, and LLCs generally does not qualify, with the exception of ranch homes.

Enhanced STAR Eligibility Criteria

• Residence: As with BASIC STAR, the home must serve as a primary residence. However, for Enhanced STAR, it must be the primary residence of at least one owner who meets the age criteria.
• Age: All owners must be at least 65 years of age as of December 31 of the year in which the exemption is claimed. However, if a married couple or siblings jointly own the property, only one owner needs to meet the age requirement.
• Income: For the year 2024, the income limit for Enhanced STAR is $98,700 or less, increasing to $107,300 or less in 2025. This limit takes into account the combined incomes of all owners (residents and nonresidents) and the owner’s spouse living in the property.
• Property: Ownership criteria are similar to BASIC STAR, with the eligible applicant(s) having to own the property. The same rules regarding multiple properties and legal separations apply.

Special Considerations

Eligibility requirements for surviving spouses

Survivors may be eligible to continue receiving Enhanced STAR benefits if they meet specific conditions set by the program.

Corporations and LLCs

Real estate owned by corporations, general partnerships, and LLCs generally does not qualify, except in cases involving ranch homes.

Understanding these criteria is essential for New York homeowners considering applying to the STAR program. It ensures that they can accurately assess their eligibility and take advantage of the tax benefits offered to make homeownership more affordable.

Timeline for Distribution of $1,407 Stimulus Check

The timeline for distributing STAR Program checks is designed to ensure timely financial relief for eligible New York State homeowners. The process begins each year in mid-April with updates to the Tax Star Credit website, which reflect new income limits, eligibility criteria and other changes. The actual distribution of funds will begin in the summer, with checks being processed and mailed to those who qualify.

The state aims to complete the issuance of most checks before September 11so that homeowners receive their financial assistance quickly. For homeowners who are already enrolled in the program and own their homes, the benefits will be provided automatically through direct checks or deductions on their school tax bills.

How to Claim the $1,407 Stimulus Check

1. Determine whether your home is your primary residence and whether you are the owner.
2. Visit New York State Website of the Ministry of Taxation and Finance to complete the STAR application online.
3. To register, call the New York State Department of Taxation and Finance.
4. Check your income by consulting your state or federal tax return from the previous year.
5. Provide age verification documents for Enhanced STAR, such as birth certificates or driver’s licenses.
6. If you are already registered and own a home, you do not need to submit a new application. You will then automatically receive benefits.
7. Submit your application before the stated deadline to ensure you receive your benefits on time.
8. Once the check has been processed, you can expect it to be mailed to you starting this summer.

By following these steps, you can ensure that you meet the requirements and successfully claim your $1,407 stimulus check through New York State’s STAR program. This financial relief can significantly ease the burden of school taxes for eligible homeowners.