You may have recently received a notification letter, Form RP-425-MBE from the New York Department of Taxation and Finance indicating that you are receiving the Basic STAR, but that you may now be eligible for the Enhanced STAR exemption, which provides a larger benefit to seniors.
To be eligible for the Enhanced STAR exemption, you must meet all of the following conditions:
- Own your home, and it is your primary residence;
- Are 65 or older by December 31 of the exemption year (if jointly owned property, only one spouse must meet this requirement); and
- Income must be $92,000 or less (combined income if jointly owned).
Income means federal adjusted gross income minus the taxable amount of total distributions from individual retirement accounts. To determine income eligibility, refer to your federal or state income tax return from the 2021 tax year.
To apply for the Enhanced STAR exemption, the following two NYS forms must be completed and submitted to your assessor’s office:
- Form RP-425-E, Application for Enhanced STAR Exemption for 2023-2024 School Year
- Form RP-425-IVP, Supplement to Form RP-425-E
The application deadline is March 1, 2023, in most areas. If eligible, you must apply directly with your assessor’s office. Once approved, you will receive the Enhanced STAR on your next school tax bill. In subsequent years, New York State will verify your income eligibility annually and will notify the assessor directly.
Authored by: Melissa S. Howell, CPA, Principal, Tronconi Segarra & Associates LLP
