It isn’t just the rising cost of consumer goods that has made life difficult for Americans recently; Housing prices, monthly rent costs, and all costs associated with property have been steadily increasing. In a recent attempt to weather the storm of inflation, the state of New Jersey has introduced a new tax rebate program. The ANCHOR tax relief program (Affordable NJ Communities for Homeowners and Renters) will apply to the primary residence of New Jersey homeowners and should arrive in the form of direct deposit.
Who Qualifies for the ANCHOR Tax Rebate?
The ANCHOR program will apply to homeowners who have owned and occupied a principal residence in New Jersey since October 1st, 2019, granted that they also paid their property taxes on that home. The taxpayer must also have New Jersey gross income of $250,000 or less in 2019 to qualify for the credit. Income over that threshold from 2019 are ineligible. The only other ineligible homeowners are those whose principal residence was completely exempt from property taxes OR those who make PILOT payments (payments-in-lieu-of-tax) to the municipality of the residence. The ANCHOR tax program does not cover non-primary residences, and/or properties that are owned and operated as rental income.
New Jersey residents who owned a condominium and paid property taxes on their unit, resident shareholders of cooperative housing complexes, and residents who live in assisted living or care communities who pay a proportionate share of the property taxes for their unit will also be eligible for this benefit.
How Much Money is the ANCHOR Tax rebate?
The dollar amount varies depending on income as well as residence type. For homeowners, the dollar amount breaks down as follows based on income:
|Income Threshold (+ Property Type)||Rebate Amount|
|Between $150,000 and $250,000 (Homeowners)||$1,000|
|$0 to $149,999 (Homeowners)||$1,500|
|$0 to 150,000 (Renters)||$450|
The tax rebate will be exempt from both State and Federal income taxes. It will be automatically issued as a direct deposit or by check. The rebates will hopefully be issued by Spring of 2023.
How do I Apply?
For homeowners who qualify and filed a Homestead Benefit application in 2022, an ID and PIN may be acquired online here (PDF File). However, it isn’t too late to apply for an application. You can apply in 2023 here (PDF File) before the deadline on February 28th, 2023. This deadline is an extension from a previous deadline. Renters/Tenants are not required to file an application.
In order to satisfy the income requirement of the application, you will need the amount of your gross income on line 29 of your 2019 NJ-1040. You can request this information if you do not have it readily available here.
Links, Resources, and Further Reading
- NJ Treasury Division of Taxation: ANCHOR Site – Link
- NJ Treasury Division of Taxation: ANCHOR Details for Homeowners – Link
- Article by northjersey.com: “Check the Mail: Details on NJ Anchor Benefit Coming Soon” – Link