Personal Finance
ANCHOR Might Eliminate Another NJ Property Tax Credit: Here's Why
Changes to the ANCHOR eligibility year mean some residents need to fill out an extra form to get their property tax credit.
NEW JERSEY — Some New Jersey residents could miss out on an annual property tax credit due to changes coming to other benefit programs, the state advised.
Typically, residents who meet certain requirements (mostly seniors and disabled residents) have received a $50 Property Tax Credit every year. That credit is paid automatically through their tax return, or with their ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) benefit if they are not required to file a state income tax return.
But because the ANCHOR benefit eligibility year is changing, the thousands of taxpayers who are not required to fill out Form NJ-1040 will not automatically receive their $50 for tax years 2022 and 2023. About 241,060 taxpayers got their property tax credit via the 2021 ANCHOR benefit, the Division of Taxation told Patch.
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ANCHOR, which replaced the Homestead Benefit, began in 2022 and was based on the 2019 tax year. That's because the Homestead Rebate program had a slight lag in the tax year for which taxpayers benefitted. So, last year's ANCHOR benefit was based on the 2021 tax year.
Because of the way the upcoming Stay NJ program is structured, this year's ANCHOR program will be based on tax year 2024. So, those residents who do not fill out income taxes would miss the 2022 and 2023 benefit years unless they take action by filling out Form NJ-1040-HW for those years.
Find out what's happening in Across New Jerseyfor free with the latest updates from Patch.
As the Division of Taxation explains:
Previously, eligible seniors and disabled residents would receive a $50 Property Tax Credit automatically—either through their NJ-1040 tax return or in addition to their ANCHOR benefit payment if they did not file a return. However, due to program changes, ANCHOR will now skip the 2022 and 2023 benefit years and move directly to 2024. This means that those who do not file tax returns will not automatically receive the credit for 2022 and 2023.
To claim these available credits, eligible taxpayers must file Form NJ-1040-HW for both2022 and 2023.
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