$2B In NJ Tax Rebates To Become Available: How To Get Your Share

NEW JERSEY — The $50.6 billion state budget has become law, and with that comes an overhaul of New Jersey's system for divvying property-tax rebates. The new, $2 billion tax-relief program replaces the Homestead Rebate — not only adjusting benefits for homeowners but also making renters eligible for the money.

Here's what to know about how the ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) Tax Relief Program will work, according to the New Jersey Department of the Treasury.

1. How do I know if I'm eligible for the ANCHOR rebate?

Refer to your gross income from Tax Year 2019. Here's why:

"Historically (formerly Homestead Benefit, now ANCHOR) there has been a slight lag in the tax year that the benefit is based on so the upcoming application period will be based on taxes paid in 2019," said state treasury spokesperson Jennifer Sciortino.

The following income levels meet the criteria for a rebate:

• Homeowners with a household income of less than $150,000
• Homeowners with a household income between $150,000 and $250,000
• Renters with incomes up to $150,000

2. How much of a benefit can I receive?

Homeowners with a household income of less than $150,000 can get a $1,500 rebate. Homeowners with a household income between $150,000 and $250,000 can receive $1,000. Renters with incomes up to $150,000 will receive $450 each.

• Related article: Tax Rebate Official As NJ Budget Is Signed: Here Is What You'll Get

With about 2 million people impacted, ANCHOR rebate recipients will receive an average of $971 for this year.

3. How do I apply for a rebate?

Eligible homeowners and rents will be able to apply this fall either online, by phone or via mail — similar to the Homestead Rebate's process.

4. When will I get my rebate?

It will be a while, but no later than May, according to the state budget's language. The timeframe gives the state time to process and validate applications, according to treasury officials. The treasury also has limits on the number of checks it can issue each week.

While the budget gives state officials a May deadline for payments, it's not yet clear when the treasury might begin distributing rebates.

"At this point in time, we can only confirm that they will go out no later than May 2023," Sciortino said.

5. How can I receive the rebate?

Recipients should be able to choose their preferred method — check or direct deposit, according to the treasury.

6. The original plan for the ANCHOR program, introduced in March, included a three-year ramp-up for rebates through Fiscal Year 2025. How will the ANCHOR program impact eligible taxpayers in future fiscal years?

"Under the agreement reached with legislative leadership a few weeks ago," Sciortino said, "the original program proposed by the governor in March has been expanded and will be fully funded in the first year so there is no longer a three-year ramp-up. Eligible recipients will get the max promised in year three."