NJ's New $2B Property Tax Rebate: How To Get Your Cut

NEW JERSEY — Filing options for the state's new ANCHOR Tax Relief Program will drop soon, according to the New Jersey Department of the Treasury. The new, $2 billion tax-relief program replaces the Homestead Rebate, and New Jersey residents will have a few months to take advantage.

The state will open ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) filing options in mid-September, according to the treasury's Division of Taxation. Dec. 30 is the filing deadline for ANCHOR applications.

Here are some reminders of what New Jerseyans should know about the program:

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: the Homestead Rebate program had a slight lag in the tax year for which taxpayers benefitted.

New Jersey residents can apply as homeowners if on Oct. 1, 2019, they:

• owned a house
• owned a condominium and paid property taxes on your unit
• were a resident shareholder of a cooperative housing complex
• were a resident of a continuing care retirement community and your continuing care contract requires you to pay the proportionate share of property taxes attributable to your unit

Homeowners don't qualify if their residence was completely exempt from paying property taxes or they made PILOT (Payments-in-Lieu-of-Tax) payments.

Unlike the Homestead Rebate, renters can qualify for the ANCHOR program. Taxpayers can qualify as tenants if on Oct. 1, 2019, they:

• rented an apartment, condominium or house
• rented or owned a mobile home located in a mobile home park

But people who lived in tax-exempt, subsidized or campus housing do not qualify.

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.

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 either online, by phone or via mail — similar to the Homestead Rebate's process.

New Jerseyans who qualify can soon file online via this link. Those filing via phone will be able to call 1-877-658-2972.

To receive a paper application, log in here using your Identification Number and PIN and print it. Or call the ANCHOR Hotline at 1-888-238-1233 to order one.

Taxpayers can mail it in or you have the option to upload a completed copy of your paper application using the state's electronic filing system. They will be able to attach supporting documents with the application.

Check here to see if you're required to file a paper application.

4. What will I need to file?

Taxpayers will need their assigned Identification Number and PIN of their principal residence (main home) that they owned or occupied on Oct. 1, 2019. Be prepared with the following:

• Valid taxpayer identification number and, if applicable, the taxpayer identification number of your spouse or civil union partner
• New Jersey Gross Income from Line 29 of your 2019 NJ-1040. (If you are not required to file an NJ-1040, report "0.")
• 2019 filing status
• Date of birth and, if applicable, your spouse's/civil union partner's date of birth

Filers will also get asked the following:

• You owned the property with someone who is not your spouse/CU partner. If yes, what percentage did you own?
• The property had more than one unit. If yes, what percentage of the property did you use as your main home?

5. 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.

It's not clear when the treasury may begin distributing rebates though.

6. How can I receive the rebate?

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