— Revised Program Includes Expanded Eligibility for Renters —
The New Jersey Society of Certified Public Accountants (NJCPA) reminds New Jersey taxpayers that the application to file for the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) property tax relief program has been extended to Jan. 31, 2023, from Dec. 30, 2022. A payment of $1,500 is available for homeowners who earn $150,000 or less and a payment of $1,000 is available for homeowners with income of more than $150,000 but less than $250,000. Renters who earn $150,000 or less will be able to receive $450. To be eligible, all homeowners and renters must have occupied their principal residence on Oct. 1, 2019.
The ANCHOR program replaces New Jersey’s Homestead Benefit rebate, which was primarily a tax credit designed to combat homeowners’ property tax challenges. Unlike the Homestead rebate, renters qualify for the ANCHOR program, which was expanded further in November to include those whose units were under a payment in lieu of taxes (PILOT) agreement. New Jersey residents who are exempt from state income taxes are also eligible to apply for the ANCHOR tax relief, unlike with the previous rebate. Eligible income levels were also expanded under the ANCHOR program.
“Every bit of savings helps to put New Jerseyans in a better financial position. Taxpayers are encouraged to contact CPAs for their prudent advice on finding the most effective tax-saving strategies and best business opportunities,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director at the NJCPA.
ANCHOR payments, which are not subject to state or federal taxes, will be distributed in the spring via checks or through direct deposit. The program is separate from the state’s Senior Freeze Program, which was initiated to halt property tax increases for those over age 65 and establish a base tax year.
To apply for and determine eligibility for the ANCHOR tax relief, visit nj.gov/treasury/taxation/anchor/.