If you’re a renter in New York City, you may think tax credits are just for owners, but you can also get a discount on your taxes through the New York City enhanced real property tax credit, which can reduce how much you owe in state taxes.
Renters who have lived in the same apartment or house for at least six months can get a credit of up to $500, based on your income and the amount you paid in rent last year. To qualify, your household income must be under $200,000, and you must have been a NYC resident for all of 2019.
There are other eligibility requirements: You can not be claimed as a dependent on someone else’s taxes, and someone in your apartment must have paid rent. If you live with roommates or your boyfriend or girlfriend, and you all plan on taking advantage of the credit, make sure you accurately split the amount of rent paid and use that number on your tax returns.
If you use an online service like TurboTax, the program will suggest the credit for you when you are filing—all you have to do is answer a couple of questions regarding your residency and how much you paid in rent, and it’ll automatically include the credit. For those filing taxes elsewhere, but sure to use the Form NYC-208.
The credit also applies to owners who have paid real property taxes and have not received more than 20 percent of their overall rent from noncommercial use.
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