New York citizens could receive a new $400 payment this month of October. Why? Because it’s part of an economic aid program. In the entire country, several states are issuing stimulus payments to help citizens who are dealing with difficult moments. Even though these payments are not a permanent solution, they are useful as a fast and direct way to help them. Apart from these state programs, the federal government is already preparing other payments that will be sent nationwide. So, let’s learn more about these payments.
Helping New York citizens
Living in New York can be very expensive. The state is known for having one of the highest costs of living of the country, and New York city tends to be the most expensive in the U.S. because the prices of housing, food, and services are way higher than the national average.
This is why Governor Kathy Hochul’s administration has issued several stimulus payments to residents who match certain requirements. The aim is to relieve families’ expenses and compensate for the inflation and the high costs of living.
One of the most popular programs the state has offered for years is the School Tax Relief (STAR), which was created because New York has some of the highest property taxes in the country and it helps homeowners save money by giving them rebates on their property taxes.
Two types of aid from STAR
The STAR program has two main versions, depending on the age and the income of each person:
- Basic STAR: it’s available to homeowners of any age, as long as their income falls within specific limits.
- Enhanced STAR: it’s designed for homeowners age 65 and older, within certain income limits. This version offers a higher rebate than the Basic STAR program.
The exact amount each homeowner receives depends on their household income. For example, Enhanced STAR beneficiaries can get up to $1,500 in rebates. To qualify for this amount, your annual household income must not exceed $107,300, along with meeting other eligibility requirements.
New $400 payment
Apart from the STAR program, the New York Department of Taxation and Finance recently announced a one-time $400 payment to compensate for the effects of inflation through a special refund.This is the first time the state of New York offers this type of payment. Interested in receiving this money? You should know that residents must match certain conditions for the 2023 tax year, according to the Department of Taxation and Finance:
- You must have filed Form IT-201, the New York State Resident Income Tax Return.
- You must have reported income within the qualifying limits to be eligible.
- You must not have been claimed as a dependent on another taxpayer’s return.
- To receive the full $400, you must either:
- Be a married couple filing jointly with a household income under $150,000, or
- Be a qualifying surviving spouse with a household income under $150,000.
More payments for New York residents
That’s not all! There’s another payment apart from the $400 payment and the STAR program refund: a $1,800 payment before the end of this year. However, this benefit goes only to families who have recently had a baby and receive public assistance. This new benefit is called BABY (Birth Allowance for Beginning Year) and it’s a one-time payment to help families with low income families with high initial costs that come with a newborn, such as diapers, baby clothes, and other essentials.
As you can see, these programs show the New York government’s compromise with its citizens’ wellbeing. Even though the payments don’t completely solve economic problems, they do represent an immediate and needed aid for those who are affected by the high cost of living in one of the most expensive states of the country.