Questions & Answers

What is the STAR Credit Advance Payment Reconciliation?

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 2021 - 2022 STAR credit advance payment check resulted in an underpayment to you of the STAR credit, you may file Form IT-119 with your 2021 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 18, 2022, due date to claim the underpayment amount of your 2021 STAR credit. If you do not file Form IT-119 with your personal income tax return by the April 18 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.

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