*There is a NEW Property Tax Credit for New York State Homeowners*
The new credit is for tax year 2021 and 2022 and 2023, the credit is called the Real Property Tax Credit, NY IT 229. This credit is for taxpayers who pay more than 6% of their income for property taxes. The taxpayers cannot earn more than $250,000 and they must have been in their home for more than 183 days and they must be full year New York State Residents. In addition, it must be their personal resident:
Example:
Someone makes $100,000 and pays $10,000 in property tax. The “excess” property tax (the amount over 6% of income) is $4,000. Based on the calculation about, the percentage of excess property tax eligible for the credit would be 12.22%, which works out to about $493. Since that number is greater than $350, the tax credit would be $350 —The maximum allowed.
It’s a similar calculation for those making between $150,000 and $250,000, except it is based on income that exceeds $150,000 (instead of $75,000) and is divided by $100,000 (instead of $75,000). That number is multiplied by 6 (instead of 5) and subtracted from 9 (instead of 14).
If you have questions or need help understanding some of the recent tax law changes do not hesitate to give us a call. Thank you for your time. Have a great day. Stay Safe.