Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Monday, July 24, 2017
OOPS THEY DID IT AGAIN, AGAIN!
wave of refund checks for the New Jersey Property Tax Reimbursement (aka “Senior
Freeze”) program have been sent out.
is consistently at the top of the list of highest real estate taxes in the
country, so this reimbursement is a very important and needed benefit for many
senior and disabled homeowners.
again, as we expected, the DFBs (clean version is “Damned Fool Bureaucrats”) in Trenton have screwed
NJ seniors and the disabled to balance the budget and continue to provide pork
and entitlements for politicians.
as happens every year, the income base for the PTR program has been reduced to
$70,000, causing many seniors and disabled residents to lose out on this
income can cost qualified NJ homeowners several thousands of dollars in
to the NJ State Tax News -
the Mail -
In mid-July, the Division of
Taxation began mailing checks for the 2016 Senior Freeze to qualified senior and
disabled homeowners who filed applications by the original filing deadline of
June 1, 2017. We will issue checks as quickly as possible to homeowners who
file their applications between the original June 1 deadline and the extended
deadline of October 18, 2017.
The State Budget has set the
following qualifications for Senior Freeze payments: Applicants are eligible if
their income did not exceed $87,007 for 2015 and $70,000 for 2016, as long as they meet all other requirements.
Residents whose income
was more than $70,000 but was $87,007 or less will not receive checks for 2016.
We will notify them that they are not eligible. However, those residents can
establish a “base year” for future reimbursements by filing an application by
the deadline. This also ensures that we will mail them applications next year.”
As the item
suggests, qualified homeowners whose 2016 income is between $70,000 and $87,007
should still submit a PTR-1 or PTR-2 application to create or maintain a “base
year” for potential future reimbursements.If you have not already submitted a PTR application you have until
October 18th to do so.
income used for the PTR program includes gross Social Security benefits (before
Medicare deductions) and otherwise tax-exempt municipal bond and US Government
Obligation income.However the amount of
pension income to claim is the same as the taxable pension income that was, or
would have been, reported on the NJ-1040.