Monday, May 3, 2010


+ Each year the State of New Jersey usually sends out the green NJ Homestead Rebate application to seniors and the disabled in May. This will not be happen this year. Here is the word from the NJ Division of Taxation -

The proposed State Budget for FY 2011 contains modifications to the Homestead Rebate Program. In years past, rebate applications were sent to senior and disabled homeowners in May. However, until the proposed modifications to the Rebate Program become State Law, no rebate applications will be sent out or accepted by the Division of Taxation. To repeat, THE DIVISION DOES NOT EXPECT TO SEND OUT REBATE APPLICATIONS IN MAY.

The Governor has proposed that 2009 rebates be paid in quarterly installments as credits on the homeowner’s property tax bill. Homeowners would receive the first quarterly credit in May of 2011. Tenants would no longer receive the rebate.

Under the proposal, eligibility requirements and rebate amounts for the 2009 homeowner rebate remain the same as last year. The eligibility criteria used last year for the 2008 homeowner rebate are as follows:

* Domicile (permanent legal residence) is in New Jersey.

* Own and occupy a home in New Jersey that was the applicant’s principal residence on October 1, 2008.

* The home must be subject to local property taxes, and 2008 property taxes must have been paid. However, the State Budget mandates that the 2008 rebate be calculated using 2006 property taxes.

* New Jersey gross income for 2008 does not exceed certain limits. For homeowners age 65 or older and/or disabled on December 31, 2008, the income limit was $150,000 or less. For homeowners under age 65 and not disabled on December 31, 2008, the income limit was $75,000 or less.

Information about the proposed changes to the Homestead Rebate Program is contained in the Governor’s
FY 2011 Budget in Brief. AGAIN, as a result of the proposed changes, rebate applications for homeowners will not be mailed in May as they had in past years.”

+ Thankfully the federal and state income tax return filing deadline for residents of Atlantic, Bergen, Cape May, Essex, Gloucester, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset and Union counties in New Jersey has been extended from April 15th to May 11th because of recent flooding.
I have several GD extensions for residents of these counties, and, while none of them were directly affected by the flooding, it is nice to have the extra time so as to avoid penalty and interest on extended returns which will have a balance due to Sam or Chris. However it does create another deadline for me to deal with.
Obviously extended returns for residents of these counties with an anticipated balance due will be given priority over returns with anticipated refunds, regardless of when the returns actually arrived in my hand.

Here is the official word from the NJ Division of Taxation -

Taxpayers affected by the storms now have until May 11, 2010 to file their New Jersey tax returns such as individual income tax, corporation business tax, sales tax, inheritance tax, estate tax, partnership and other business taxes administered by the Division of Taxation and to submit payments for any return and/or payment, including estimated payments which have either an original or extended due date occurring on or after March 12, 2010 and on or before May 11, 2010.
If the IRS further extends the filing deadline for federal tax purposes, the deadline for New Jersey returns and payments will also be extended.”