Form IT-214: NYS Real Property Tax Credit
Learn how certain NYS residents can lower their state tax liability based on property taxes paid. This refundable credit is available to eligible homeowners and renters.
New York State’s Form IT-214 provides a refundable tax credit to certain residents for the real property taxes they pay. This credit assists households with lower incomes with the financial load of property taxes, whether paid directly as a homeowner or indirectly as a renter. The credit is calculated based on household income and the amount of property taxes or rent paid. It reduces a filer’s tax liability and can result in a refund even if no income tax is owed.
Eligibility for the Real Property Tax Credit
To qualify for the real property tax credit, an individual must have been a New York State resident for the entire tax year and occupied the same residence in the state for at least six months. The taxpayer cannot be claimed as a dependent on another person’s federal income tax return.
The eligibility rules extend to both property owners and renters, with specific financial thresholds. A primary requirement is that the total household gross income for the year must be $18,000 or less. For homeowners, the current market value of all real property they own cannot exceed $85,000. Renters have a different threshold; the average monthly rent paid by the household must be $450 or less, excluding separate charges for utilities.
Further conditions apply based on the property’s use. The residence cannot be entirely exempt from real property taxes. For homeowners, if any part of the residence was rented out for nonresidential purposes, the income from that activity must not have exceeded 20% of the total rent received. The credit amount can be up to $75, but if at least one household member is 65 or older, the maximum credit increases to $375.
Information and Calculations for Form IT-214
Completing Form IT-214 requires gathering specific financial data for every individual who resided in the household. This includes the full name and Social Security number for each household member. You will need to compile all income information to determine the household’s total gross income. For homeowners, the total amount of real property taxes paid is a necessary figure, while renters must have the total rent they paid.
Calculating household gross income combines various sources of income from all household members. This figure includes Social Security benefits, wages, salaries, tips, interest and dividend income, and pensions. The definition of household gross income for Form IT-214 is broad and encompasses most forms of cash income received by anyone living in the home.
Renters do not pay property taxes directly, but they can claim the credit by calculating a “real property tax equivalent.” This figure is derived from the total rent paid throughout the year. A specific percentage of the annual rent is considered the portion that covers property taxes.
Once all necessary income, tax, and rent figures are gathered, they must be entered onto Form IT-214. The calculations for household gross income and the real property tax equivalent are transferred to designated lines on the form, which then determines the final credit amount.
Filing Form IT-214
After completing the form, the method of submission depends on whether you are otherwise required to file a state income tax return. Taxpayers who file a New York State personal income tax return, such as Form IT-201, must attach Form IT-214 to it.
For those using tax preparation software, the program will prompt for the necessary information and electronically attach Form IT-214 to the e-filed state return. If filing a paper return, the completed IT-214 should be physically attached to the Form IT-201 or other relevant state tax form before mailing.
Individuals who are not required to file a New York State income tax return but qualify for the credit can still claim it. In this scenario, they would complete Form IT-214 and file it by itself to claim a refund.