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Real property tax credit definitions

Household gross income includes the following items of income that you and all members of your household received during the tax year:

  • Federal adjusted gross income (FAGI) (even if you don't have to file a federal return)
  • New York State additions to FAGI
  • Support money, including foster care support payments
  • Income earned abroad exempted by section 911 of the Internal Revenue Code (IRC)
  • Supplemental security income (SSI) payments to the extent not included in FAGI
  • Nontaxable interest received from NYS, its agencies, instrumentalities, public corporations, or political subdivisions
  • Workers' compensation
  • Gross amount of loss-of-time insurance (for example, an accident or health insurance policy and disability benefits received under a no-fault automobile policy).
  • Cash public assistance and relief. Do not include amounts received from the Home Energy Assistance Program (HEAP) or medical assistance for the needy
  • Nontaxable strike benefits
  • Gross amount of pensions and annuities, including railroad retirement benefits, to the extent not included in FAGI
  • All payments received under the Social Security Act and veterans disability pensions, less any Medicare premiums deducted from your benefit, reported on Form SSA-1099, Social Security Benefit statement

Household gross income does NOT include food stamps, Medicare, Medicaid, scholarships, grants, surplus food, or other relief in kind. It also does NOT include payments made to veterans under the Federal Veterans' Dioxin and Radiation Exposure Compensation Standards Act or payments made to individuals because of their status as victims of Nazi persecution as defined in Public Law 103-286.

New York State additions

Some of the most common NY additions are:

  • interest on federal and other states' bonds
  • public employees 414(h) retirement contributions
  • NYC flexible benefits program
  • NYC health insurance and welfare benefit fund

(for a complete list of New York State additions, see the instructions for Form IT-225)

Household members include all who share your residence and its furnishings, facilities, and accommodations, whether those household members are related to you or not. However, tenants, subtenants, roomers, or boarders are not members of your household, unless they are related to you.

Residence means a dwelling that you own or rent, including up to one acre of land around it, in New York State. If the residence is on more than one acre of land, only the amount of real property taxes or rent paid that applies to the residence and only one acre around it may be used to figure the credit.

  • Each residence within a multiple dwelling unit may qualify.
  • A condominium, a cooperative, or a rental unit within a single dwelling is a residence.
  • A trailer or mobile home that is used only for residential purposes is also a residence if the trailer or mobile home is assessed for real property tax purposes, even if you do not directly pay the taxes on the home (for example, the owner of the park where your home is located pays the taxes on it).

Real property taxes paid means all real property taxes you (or your spouse, if they occupied the residence for at least six months) paid on the residence during the tax year, including:

  • current, prior and prepaid real property taxes
  • special ad valorem levies, and assessments levied

If you are a homeowner age 65 or older, you may elect to include real property taxes that are exempted from tax under section 467 of the Real Property Tax Law. If you do not know this amount, contact your local assessor. Do not include the  veterans' or STAR tax exemptions.

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