The next ANCHOR property tax benefit: Your questions answered. (2024)

New Jersey residents have been eagerly awaiting their ANCHOR property tax benefit.

The benefits, which are for the 2021 tax year, will pay up to $1,500 to homeowners and $450 for renters, with senior homeowners and renters getting an extra $250.

While many parts of the program are the same as past years, there are some important changes taxpayers should know.

First, the Treasury Department will send notification letters on Aug. 19 to 1.5 million New Jersey taxpayers. The letters will tell recipients — both homeowners and renters whose eligibility information the state already has — that their ANCHOR applications will be filed automatically.

But if any of your information has changed, you’ll have to file a brand new application by Sept. 15, 2024, an earlier deadline than years past.

Most of those who don’t receive a letter will get an application packet, which the state said will be mailed on Aug. 26. These are green for homeowners and purple for renters, and will have the ID number and PIN needed to complete the application.

You can apply even if you don’t receive a notification letter or an application packet. You’ll need to log in to anchor.nj.gov and verify your identity using ID.me. Once you do, your needed ID number and PIN will be provided on the screen.

The deadline to file is Nov. 30, 2024.

The state said payments will start to go out at the beginning in November, though last year, the first round of direct deposits started on Oct. 12 and both checks and direct deposits went out in batches thereafter.

There are more details to learn about the program and how to get paid. Here’s a look, based on the Frequently Asked Questions section of the ANCHOR website.

AM I ELIGIBLE?

New Jersey homeowners are eligible for ANCHOR if they owned and occupied a home in the state that was their principal residence on Oct. 1, 2021. They must also have gross income of $250,000 or less.

Renters must have rented their home by Oct. 1, 2021 and their gross income must not be more than $150,000. Their names have to be on the lease agreement and the rental property must be subject to local property taxes. See what properties are qualified here.

WHAT IF I MOVED OUT OF N.J.?

The state is sorry to see you’ve left, but if you met the Oct. 1, 2021 residency deadline and the income requirements, you’re still eligible for the benefit.

I WAS IN ASSISTED LIVING. WHAT ABOUT ME?

If you were a temporary resident of an assisted living facility and you owned a home on Oct. 1, 2021 and you did not change your primary domicile, and if you meet the income limits, you still qualify.

But if your domicile changed, you should not file, the state said.

I LIVE IN A MOBILE HOME. WHAT ABOUT ME?

If you owned or rented a mobile home that was located in a mobile home park, you are considered a renter for purposes of applying for ANCHOR, the state said.

MY INFO CHANGED. WHAT DO I DO?

You will need to update your information by filing an application on your own before Sept. 15, 2024.

“We will not make adjustments to your name or banking information after September 15, 2024,” the state said. “Payments will be issued using the information we have on file.”

I DIDN’T GET A LETTER. WHAT NOW?

If you don’t get a notification letter, you should get an application packet — green for homeowners and purple for renters — by Sept. 2, 2024. The state said it’s mailing them out starting on Aug. 26.

It will include the ID and PIN needed for homeowners to file online. Renters will not need an ID or PIN. Both homeowners and renters may need to verify their identity using ID.me.

“However, if you bought your home in 2021, altered your deed, or had certain life changes such as a divorce or death of a spouse, you must file using the Special Circ*mstance Application,” the state said.

WHAT IS A SPECIAL CIRc*msTANCE APPLICATION?

Some taxpayers will be required to file a Special Circ*mstances Application. You will need to file it if:

• You shared ownership of your main home with someone who was not your spouse/civil union (CU) partner and your percentage of ownership is not preprinted on your worksheet;
• Your main home was a unit in a multi-unit property that you owned;
• You received an ANCHOR information mailer for the correct property, but the name on the mailer is not yours or needs to be changed due to marriage, death, etc.;
• You are a widow(er)/surviving civil union partner and your deed lists both your name and the name of your deceased spouse;
• You are an executor filing on behalf of a deceased homeowner (you must include a death certificate with the application);
• You occupied a newly constructed home on October 1, 2021, for which you did not receive an ANCHOR mailer with an Identification Number and PIN;
• You are considered a homeowner for purposes of applying for the ANCHOR benefit, but you were not the actual owner of record on October 1, 2021;
• You and your spouse/civil union partner maintained the same main home and require separate ANCHOR benefit payments;
• You are filing for a property held in trust. (You are considered an eligible owner of a property owned by a trust if you are a beneficiary, or the deed or trust agreement explicitly states that you have a life estate in the property.);
• You are unable to find your ID and PIN.

If you have to file this application, be sure to include all supporting documents, the state said.

I APPLIED FOR ANCHOR IN 2020. DO I HAVE TO APPLY AGAIN?

Maybe. If you receive a notification letter from the state saying your application is being filed automatically, as long as your information has not changed, you do not need to do anything to get your benefit. But if your information has changed, you will have to act. If you receive an application packet, you will have to apply.

I RECEIVED THE WRONG KIND OF PACKET. WHAT DO I DO?

If you’re a renter but you received a homeowner packet, or if you’re a homeowner who received a renter packet, don’t use it. File a new application instead.

DO I HAVE TO FILE ONLINE?

No. You can also download a paper application and mail it in.

WHY CAN’T I DOWNLOAD A PAPER APPLICATION?

The state said some taxpayers may have either browser or software issues that prevent them from downloading a paper application. If you have trouble, it says you should use Microsoft Edge or Google Chrome and upgrade to the latest Adobe software to download a paper application.

HOW MUCH WILL I GET?

Renters who are 64 or younger will receive $450, and those who are 65 or older will get $700.

Homeowners who are 64 and younger and who earn $150,000 or less will receive $1,500, while those who are 65 and older with that income level will get $1,750. Those who earn $150,001 to $250,000 will receive $1,000 if they’re 64 or younger, while those at that income level who are 65 and older will receive $1,250.

CAN I UPDATE MY BANKING INFORMATION?

Yes. If you received direct deposit last year but your bank account has changed, you need to log in to the online filing service and file a new application by Sept. 15, 2024, to have your information updated.

WHAT IF I RENT WITH OTHER PEOPLE?

Each renter applies separately, the state said.

“Enter your name only, the number of people you shared the rent with, and the names of all renters on the appropriate line,” it said, adding that married/civil union (CU) couples who file jointly are not considered multiple renters.

WHAT IF MY NAME WASN’T ON THE LEASE?

If only one person’s name was on the lease, only that person qualifies for the benefit. If multiple people had names on the lease, all qualify if they meet the income requirements.

WHAT IF MY LANDLORD HAS A P.I.L.O.T. AGREEMENT?

If your landlord does not pay traditional property taxes and has a P.I.L.O.T. (Payment in Lieu of Taxes) agreement, you are still eligible for ANCHOR.

WHAT IF I LIVE IN GOVERNMENT-ASSISTED HOUSING?

You are still eligible if your residence was a “qualified rental property” subject to property taxes.

WHAT IF I LIVE IN SENIOR HOUSING?

You still qualify, as long as the building was a “qualified rental property” subject to property taxes.

WHAT IF I PAID TO LIVE IN SOMEONE ELSE’S HOME?

If you paid rent to your parents, friends or others, you are eligible if you had a lease, had access to the kitchen and bathroom and meet the income limits. But if you rented a room with no kitchen privileges, you are not eligible, the state said.

WHAT IF I GOT MARRIED?

If you owned the home together on Oct. 1, 2021 and you married before the end of the year, you are considered one owner because you were married on or before Dec. 31, 2021.

“You can file online if a name change is not needed. File online using the preprinted names, enter your 2021 combined gross income, and answer `no’ when asked if you owned the home with someone other than a spouse, the state said.

But if a name change is required, you need to file a Special Circ*mstances Application and include legal documentation, such as a marriage certificate, that shows your correct name.

If you married after Dec. 31, 2021, note that your eligibility is based whether you owned and occupied the property on Oct. 1, 2021 and what your tax filing status was in 2021.

“If you co-owned the property on Oct. 1, 2021, but were unmarried as of Dec. 31, 2021, you are considered multi-owners and each person must file their own application,” the state said.

If you want one benefit payment: If a lease was in your name and your partner’s name and you lived together on Oct. 1, 2021, you should complete one application together, the state said, adding that you should use your 2021 combined gross income on the application.

If you want separate benefit payments: Each person must complete a separate application and check the box that says “I would like my half of the benefit in a check with only my name” in Section D. The state said to enter your combined 2021 gross income because benefit eligibility is based on joint income.

I RENTED OUT MY HOME. HOW DOES THAT WORK?

If you owned your home and had renters who signed a lease, you are all eligible for your own benefits and you must all file your own applications.

WE HAVE MULTIPLE OWNERS. WHAT THEN?

If you owned a home with someone who was not your spouse and the preprinted information on your application has multiple names, you must file a Special Circ*mstances Application in your name only.

“On the application, you need to indicate you owned the property with someone other than a spouse, and fill in your proportionate share of ownership,” it said. “If your name is not preprinted, include a copy of the property deed that shows you are an owner.”

I’M DIVORCED. HOW DO I FILE?

If your ANCHOR filing information lists both your name and your former spouse’s or partner’s name, you must file a Special Circ*mstances Application to change the preprinted filing information. Be sure to include supporting documents, such as a divorce decree, with your application, the state said.

If you were a married person on Oct. 1, 2021, but you divorced on or before Dec. 31, 2021, and only you lived in a rental property on Oct. 1, you should file an application in your name only.

If you were a married person on Oct. 1, 2021 and you divorced on or before Dec. 31, 2021, but you both lived in the property on Oct 1, 2021, you are each entitled to a benefit.

If you owned a home together on Oct. 1, 2021, each of you is entitled to one half of the benefit, the state said.

“You should file an application in your name only, using the same filing status used on your 2021 Income Tax return. Your ex-spouse/partner must file a separate application to receive their half,” the state said.

MY SPOUSE DIED. HOW DO I FILE?

If your ANCHOR filing information has both your name and your deceased spouse’s name, you must file a Special Circ*mstances Application to remove your spouse’s name. Include supporting documents, such as a death certificate, with your application.

CAN A TRUST GET ANCHOR?

Maybe.

“To be eligible, you must be a beneficiary of the trust, occupy the home as your main home on October 1, 2021, and meet the income requirements,” the state said. “The 2021 property taxes must have been paid by June 1, 2022. File a Special Circ*mstances Application, and submit a copy of the trust agreement for proof of eligibility.”

DO I HAVE TO REPORT ANCHOR ON MY TAX RETURN?

No.

WHAT IS THE DEADLINE TO FILE?

Nov. 30, 2024 is the deadline to file.

HOW CAN I GET HELP?

You can call the ANCHOR hotline at (888) 238-1233 or (609) 826-4282 for help, or you can visit a regional help center. You can see all the locations here. Appointments are not required, but you can make one on the state website.

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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Follow her on X at @KPMueller.