Homeowner Tax Rebate Credit (HTRC)

Homeowner Tax Rebate Credit (HTRC)

The New York State 2022-2023 Fiscal Year budge has included a one year, $2.2 billion program that will help taxpayers offset some of the financial pressure from the coronavirus pandemic and inflation. The process for mailing out these checks has already started, and some taxpayers may have already received theirs.

Eligibility

In order to be eligible for the Homeowner Tax Rebate Credit, you must meet the following requirements:

  • Be eligible for a 2022 STAR Credit or exemption
  • Had an Adjusted Gross Income (AGI) that was less than or equal to $250,000 on your 2020 income tax return
  • Have a school tax liability for the 2022-2023 school year that is more than your 2022 STAR benefit

If you meet the above requirements, there is no further action required on your part. New York State has already calculated your credit amount and will be mailing out the check during the month of June. If you do not receive a check by early July, then you can expect to receive it prior to the next tax bill due date.

Credit Amounts

The amount of your rebate credit will depend on:

  • Which county and school district your home is located in
  • How much your 2020 Federal Adjusted Gross Income was on your 2020 income tax return
  • Whether you receive Enhanced STAR or Basic STAR

Credit Calculation (Homeowners outside of New York City)

If you receive the Enhanced STAR exemption or credit, your homeowner tax rebate credit will be 66% of the Enhanced STAR exemption regardless of your income.

If you receive the Basic STAR exemption or credit, your credit amount will be a certain percentage of the Basic STAR exemption savings based on which income bracket you fall into. The brackets are as follows:

2020 Federal Adjusted Gross Income HTRC percentage of 2021 STAR Exemption
$0 to $75,000 163%
$75,000.01 to $150,000 115%
$150,000.01 to $200,000 66%
$200,000.01 to $250,000 18%

Credit Calculation (Homeowners within New York City)

If you receive the Enhanced STAR exemption or credit, your homeowner tax rebate credit will be 110% of the Enhanced STAR exemption regardless of your income.

If you receive the Basic STAR exemption or credit, your credit amount will be a certain percentage of the Basic STAR exemption savings based on which income bracket you fall into. The brackets are as follows:

2020 Federal Adjusted Gross Income HTRC percentage of 2021 STAR Exemption
$0 to $75,000 125%
$75,000.01 to $150,000 115%
$150,000.01 to $200,000 105%
$200,000.01 to $250,000 100%

Credit Limitations

The amount of your homeowner tax rebate credit cannot be more than the amount of your net school tax liability for the 2022-2023 school year after taking into account your 2022 STAR benefit.

If you receive the Basic STAR credit, and your school tax bill is $1,000 and your STAR check is $600, then your homeowner tax rebate credit cannot be more than the difference ($400).

If you receive the Basic STAR exemption on your school tax bill, and your school tax bill is $400, your homeowner tax rebate credit cannot be more than $400.

By law, the Tax Department cannot issue a homeowner tax rebate credit for less than $100.

Tax Return Reporting

If you are eligible, and do receive the Homeowner Tax Rebate Credit, you will have to report this on your New York State Individual Tax Return. The reporting requirement will be the same as the STAR Credit where if you itemize your deductions, then you will reduce the real estate taxes paid by the amount of both the STAR Credit and the homeowner tax rebate credit received during the year.

Related Links

New York State HTRC Information

New York State HTRC Check Lookup

New York State 2021 final STAR credit and exemption

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