Eligible New York residents can expect a brand new check to hit their bank accounts soon. With the federal tax season coming to a close for the 2024/2025 fiscal year in April, by this point, taxpayers should have received their respective refunds and tax rebates from the Internal Revenue Service (IRS). However, individual states are still underway with sending rebate credits and refunds to their residents for state-specific tax programs such as state income tax and property tax.
Which taxpayers received refunds this year?
Tax rebates are issued to taxpayers who overpay their tax liability. In terms of federal income tax, these refunds are processed within a matter of weeks, with your refund hitting your account depending on which method you have chosen to file with. The fastest way to receive your tax refunds from the IRS is to use the e-filing option, where you will be issued a refund within 21 days. For returns sent by mail, this can take up to six weeks. However, these timeframes can be longer if there is an error found in your return.
Additionally, refunds can take longer to be distributed if you are also planning on claiming back tax credits. Tax credits directly reduce your tax liability, unlike refunds, which are merely a return of money you have overpaid the authorities with. Some of the most utilized tax credits include the Child Tax Credit and the Additional Child Tax Credit.
While refunds from the IRS are still issued either through direct deposit or by mail, the Social Security Administration (SSA) has decided that mailed paper checks will no longer be issued to its recipients, unless beneficiaries apply for an exception to continue to receive paper checks. With an increasingly digitalized world, it remains to be seen whether the IRS may take a similar direction as the SSA regarding halting the distribution of paper checks.
$1,500 checks if you live in New York
At the state level, local governments continue to be involved with issuing their own refunds and rebates to residents. This month, eligible New Yorkers can expect to receive up to $1,500 as part of the School Tax Relief (STAR) program. STAR provides tax relief to New York homeowners on their property taxes.
There are two versions of the STAR program that homeowners can apply to be part of:
- Basic STAR: This program is reserved for homeowners of any age within specific income limits.
- Enhanced STAR (E-STAR): This program is reserved for homeowners over 65 years of age who must meet stricter income requirements.
The $1,500 property tax rebate is specifically reserved for Enhanced STAR recipients. To receive the payment, your annual household income cannot exceed $107,300, and it must be your primary residence, according to the New York Department of Taxation and Finance. Payments negan to be distributed from September and will continue to the end of the year.
States continue to offer property relief
New York is not the only state offering property tax relief to residents. Neighboring state New Jersey is currently underway with distributing its Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program payments. ANCHOR provides property tax relief for both New Jersey homeowners and renters.
In order to be eligible to take part in ANCHOR, you need to meet specific income limits, which will differ depending on if you are a homeowner or renter. The deadline to apply to take part in the program is the end of October; however, the state has already been distributing payments to beneficiaries who have already applied and been subsequently approved. Beneficiaries who are eligible for the program but need to update their banking information need to do so by September 15.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
