ANCHORS AWAY!

 

New Jersey has replaced the Homestead Benefit property tax relief program with ANCHOR – Affordable New Jersey Communities for Homeowners and Renters.

The 2022 program is for NJ residents who were a homeowner or resident on October 1, 2019.  The amount of the benefit payment is based on the NJ Gross Income from the taxpayer’s 2019 NJ-1040 Line 29.

Homeowners with 2019 NJ Gross Income of $150,000 or less will get $1,500 and those with 2019 NJ Gross Income of $150,001 - $250,000 will get $1,000.  Tenants with 2019 NJ Gross income of $150,000 or less will get $450.

The total amount of all property tax relief program benefits for a taxpayer – ANCHOR, Property Tax Reimbursement and any tax reduction for seniors, veterans and the disabled – cannot be more than the total property taxes paid on his or her primary residence for the year.

Homeowners whose residence was exempt from local property taxes and those who made “Payments in Lieu of Tax” and tenants who lived in tax-exempt, subsidized and campus apartments do not qualify for the benefit payment.

Payment of the benefit will be via either direct deposit or paper check.  Benefit payments applied for this year are expected to be paid in May 2023.

As with the Homestead Benefit, residents will be sent an application package and can apply either online or by phone.  Some residents may be required to file a paper application.  The deadline for filing an ANCHOR application is December 30, 2022.

Applications will be sent out next month.  Here is a chart of the mailing schedule for the application packages-

COUNTY	MAILING TO BEGIN
Burlington, Hunterdon, and Mercer	September 12, 2022
Atlantic and Essex	September 14, 2022
Bergen and Warren	September 16, 2022
Ocean, Salem, and Sussex	September 19, 2022
Cumberland, Gloucester, and Hudson	September 21, 2022
Monmouth and Somerset	September 23, 2022
Passaic and Union	September 26, 2022
Cape May and Middlesex	September 28, 2022
Camden and Morris	September 30, 2022

The ANCHOR application is NOT an income tax form and has nothing to do with state income tax.  While your tax preparer may be willing to assist you with the application process do not expect him or her to file it for you.

TTFN