enhanced star – new rules

The Basic STAR exemption (less commonly known as the NY State School Tax Relief program) is available to homeowners of any age whose primary residence is in New York, and whose income is $500,000 or less. An Enhanced STAR exemption is available to homeowners who are 65 or older and earn $86,300 or less. The new law change makes it easier to verify income for the Enhanced STAR tax credit.

Prior to 2019, the local assessor verified eligibility for Enhanced STAR each year, based on information the homeowner provided. Beginning this year, the assessor will verify income for the first year only. Thereafter, the NYS Tax Department will automatically verify eligibility. The process is now streamlined and eligible homeowners will no longer have to share their income tax returns with the local assessor’s office.

No action is needed to continue receiving Enhanced STAR for those already enrolled in IVP, the Income Verification Program. For those who receive the Enhanced STAR exemption but are not enrolled in the IVP, or who received Basic STAR and are now eligible for Enhanced STAR, the following state forms must be submitted to the local assessor:
n Form RP-425-Rnw: Renewal Application for Enhanced STAR Exemption for the 2019-2020 School Year
n Form RP-425-IVP: Supplement for Forms RP-425-E and RP-425-Rnw
The deadline for submission in most of the state is March 1, but check with your local assessor because there are notable exceptions.

For taxpayers also receiving the age 65 plus exemption, enrollment in Enhanced STAR will no longer be automatic. Instead, beginning in 2019, a separate application is needed for each tax break and the seniors’ exemption must be renewed annually with the local assessor.

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