Beginning with the assessment rolls used to levy school taxes
for the 2016-2017 school year, the School Tax Relief (STAR)
exemption was changed to a STAR credit for new homeowners.
New homeowners must register with the New York State Tax
Department to be eligible for the basic or enhanced STAR credit.
Effective on and after April 1, 2019, homeowners receiving the
STAR exemption may switch to the STAR credit.
STAR credit applicants receive the STAR credit in the form of an
advance payment check directly from New York State instead of
receiving a school property tax exemption. The amount of your
STAR benefit is the same regardless of how you receive it.
Legislation enacted in 2017 allows the Tax Department to
estimate STAR credit advance payment amounts to timely issue
the checks. If the department later determines that a property
owner(s) received an estimated STAR credit advance payment
that is less than the credit amount the property owner(s) was
entitled to, the department will notify the property owner(s) of the
underpayment amount.
If you received a notice from the Tax Department stating
that your estimated 2020 - 2021 STAR credit advance
payment check resulted in an underpayment to you of the
STAR credit, you may file Form IT-119 with your 2020 New
York State personal income tax return (Form IT-201 or IT-203)
to claim a refundable credit for the underpayment amount. The
entire underpayment amount, as shown on the notice from
the department, can only be claimed on one Form IT-119 for
the tax year and must be claimed for the tax year in which the
underpayment occurred.
You must file Form IT-119 with your Form IT-201 or IT-203 by the April 17, 2021, due date to claim the underpayment amount
of your 2020 STAR credit. If you do not file Form IT-119 with
your personal income tax return by the April 17 due date, or you choose not to claim a credit for the underpayment amount on
your personal income tax return, the Tax Department will adjust
your next STAR credit advance payment check to reconcile any
underpayment amount.
Note: If two or more people own a property, and each owner
files a separate income tax return with Form IT-119, one credit
for the entire underpayment amount will be allowed to the
property owner who files the first claim for the STAR credit
advance payment reconciliation.
