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I am claiming itemized deductions, so where to I deduct my NY property tax relief and STAR credit on my Federal return? When filling out my NY return it says I must.

Forum|Forum|7 years ago
June 5, 2019
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When filling my NY State return I reported the two NY tax breaks I received, Property Tax Relief and STAR credit. When filling them out it says I need to reduce my federal property tax deduction by this amount, where do I do this on my Federal return?

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Best answer by kyleyoungs

In the same location you enter your 1098 there is a real estate total that you can manually change.

K

kyleyoungsAuthor

[mention://77326720 @TurboTaxMinhT] They are higher than the credits! Should I just lower the amount reported on my 1098 and check the box stating that the amount that I entered is different then on the 1098? or is the way that you instructed above the best way?

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MinhT1

You reduce the amount reported on form 1098 by the amounts of the 2 credits and enter the net amount. You do not need to check the box stating that the amount is different from the amount reported on the 1098, as this box applies only to mortgage interest. Hope this helps!

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N

NY2

If the reductions to the property taxes paid are applied when entering Form 1098 in the Federal Return, should the credits also be reported in the NYS Tax Return? Turbo Tax for New York State has a section asking for both the amount of any STAR or Tax Relief Credit received.

E

EMB2

I have the same question. The page in the NY state section is badly worded. It says not to enter the STAR credit if it's reflected on your property tax bill, then says you need to "reduce your federal deduction" if you are itemizing. So if I'm itemizing, but I already reduced the real estate taxes by the amount of the STAR credit, does that override the instruction not to enter the STAR credit or not?

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kyleyoungsAuthor

Yes, that’s correct. Thanks!

K

kyleyoungsAuthorAnswer

In the same location you enter your 1098 there is a real estate total that you can manually change.

M

MinhT1

On your federal tax return, you reduce the amount of your property taxes by these 2 amounts and report the net amount as Property Taxes under Deductions & Credits > Your Home > Property (Real estate) Taxes.

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