OT: NJ Property Tax Relief Applications

[retired711]

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

 

[AM ClocksPF]

I assumed that the Stay in NJ was automatic, the article I read last year did not indicate that we have to apply for this Stay in NJ.

Thanks

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

 

[knightfan7]

I assumed that the Stay in NJ was automatic, the article I read last year did not indicate that we have to apply for this Stay in NJ.

Thanks

Thought the same.

 

[retired711]

Thought the same.

Apparently all that was meant was that no separate application would be required -- that instead the NJ Anchor application would suffice. That's why the one application covers all the property tax relief programs.

People should be aware that social security benefits (which can be $100,000 or more for a married couple if both worked at high-income jobs during their careers) count in the calculation of income eligibility. New Jersey income tax doesn't apply to social security benefits and so the state needs the applicant to tell them their amount.

 

[DHajekRC84]

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

yes I took me almost an hour to do it all because I had to gather all that info on the fly and create that id.me
It would be nice if they told you all you will need as a list before you start the process.

As I also noted a few weeks ago when I posted about this process and changes is that the base year for Anchor has eliminated 2022 & 2023 to harmonize the basis for income . for non-seniors this could screw them out of the program or reduce their benefit because their income could have changed as well as their residency as home owner vs. renter.

 

[retired711]

yes I took me almost an hour to do it all because I had to gather all that info on the fly and create that id.me
It would be nice if they told you all you will need as a list before you start the process.

As I also noted a few weeks ago when I posted about this process and changes is that the base year for Anchor has eliminated 2022 & 2023 to harmonize the basis for income . for non-seniors this could screw them out of the program or reduce their benefit because their income could have changed as well as their residency as home owner vs. renter.

The form does ask for 2023 and 2024 income, so presumably benefits are based on that income.

 

[DHajekRC84]

The form does ask for 2023 and 2024 income, so presumably benefits are based on that income.

2024

(owner)You are eligible if:

• You were a New Jersey resident; and
• You owned and occupied a home in New Jersey that was your principal residence (main home) on October 1, 2024; and
• Your home was subject to property taxes; and
• Your 2024 New Jersey gross income was not more than $250,000.

(renter)
You are eligible if:

• You were a New Jersey resident; and
• You rented and occupied a residence in New Jersey that was your principal residence (main home) on October 1, 2024; and
• Your name was on the lease or rental agreement; and
• You paid rent; and
• The rental property was subject to local property taxes, (see Qualified and Non-Qualified Rental Properties); and
• Your 2024 New Jersey gross income was not more than $150,000.

The payments for 2022 and 2023 that Christie postponed for budget balancing reasons have now been eliminated.

 

[RU-Kidding]

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

"For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000." Assuming timing filing, when is it expected for the Stay NJ to be reimburseed by the State???? 2026??

 

[knightfan7]

"For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000." Assuming timing filing, when is it expected for the Stay NJ to be reimburseed by the State???? 2026??

Yes, 2026

 

[retired711]

"For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000." Assuming timing filing, when is it expected for the Stay NJ to be reimburseed by the State???? 2026??

The state's site says early 2026.

 

[retired711]

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

NJ says it will mail out application packets in mid-March. But it's possible to submit applications on-line before then as I did.

 

[DHajekRC84]

"For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000." Assuming timing filing, when is it expected for the Stay NJ to be reimburseed by the State???? 2026??

your payments from Stay in early(?) 2026 will be the balance owed to get you to that 50% number up to the $6500. Any money earned and paid under Anchor and Freeze get deducted from that amount. The other BIG thing is that these programs must be funded each year and STAY NJ is not currently fully funded as written. Don't expect if to go away but that consideration always exists. They could change the rules at any time (as they just did). So don't put this money in your guaranteed for life file an planning.

"AARP applauds state lawmakers and Gov. Phil Murphy for including more than $2 billion for property tax relief in the budget for the 2025 fiscal year, which began July 1.

The funding includes $220 million for the new Stay NJ program, which when fully implemented will reduce older residents’ property tax bill by 50 percent, up to $6,500 a year.

Residents 65 and older with an annual income of $500,000 or less will be eligible to receive benefits starting in late 2025, pending approval of additional funding in the fiscal year 2026 budget."

NJ Budget Includes $2 Billion for Property Tax Relief

AARP pushed for the tax breaks to help older homeowners remain in their communities as they age.

states.aarp.org

 

[richthedentist]

your payments from Stay in early(?) 2026 will be the balance owed to get you to that 50% number up to the $6500. Any money earned and paid under Anchor and Freeze get deducted from that amount.

Is there any age for these or is over 65 years old?

 

[DHajekRC84]

Is there any age for these or is over 65 years old?

Freeze and Stay are 65. Anchor is any age as long as you meet the other requirements. My 28 YO daughter who rents has gotten the $400 last couple of years including the 2024 year. She will now benefit from the step up years because she is buying her first home and will get the $1500 Homeowners Benefit for 2026 (2025 base year).

Had they not changed the Anchor Base year she would have gotten the $400 for three more years before converting over. Now she will the $1500 two years earlier. (unfortunately for some others the exact opposite would be true if they sold then rented ).

 

[retired711]

your payments from Stay in early(?) 2026 will be the balance owed to get you to that 50% number up to the $6500. Any money earned and paid under Anchor and Freeze get deducted from that amount. The other BIG thing is that these programs must be funded each year and STAY NJ is not currently fully funded as written. Don't expect if to go away but that consideration always exists. They could change the rules at any time (as they just did). So don't put this money in your guaranteed for life file an planning.

"AARP applauds state lawmakers and Gov. Phil Murphy for including more than $2 billion for property tax relief in the budget for the 2025 fiscal year, which began July 1.

The funding includes $220 million for the new Stay NJ program, which when fully implemented will reduce older residents’ property tax bill by 50 percent, up to $6,500 a year.

Residents 65 and older with an annual income of $500,000 or less will be eligible to receive benefits starting in late 2025, pending approval of additional funding in the fiscal year 2026 budget."

NJ Budget Includes $2 Billion for Property Tax Relief

AARP pushed for the tax breaks to help older homeowners remain in their communities as they age.

states.aarp.org

According to the Governor's office, the 2025 FY budget pre-funds the Stay NJ program for FY 2026:

"Additionally, the budget provides over $200 million to pre-fund the Stay NJ property tax relief program that is expected to launch in FY2026. Once fully implemented, Stay NJ is intended to cut property taxes in half for many eligible New Jersey seniors by providing a direct credit of up to $6,500 on property tax bills. " https://www.nj.gov/governor/news/news/562024/20240628b.shtml

FWIW, $200 million isn't much in the context of a $56 billion budget. The NJ Anchor program, by contrast, costs over $2 billion annually.

 

[DHajekRC84]

According to the Governor's office, the 2025 FY budget pre-funds the Stay NJ program for FY 2026:

"Additionally, the budget provides over $200 million to pre-fund the Stay NJ property tax relief program that is expected to launch in FY2026. Once fully implemented, Stay NJ is intended to cut property taxes in half for many eligible New Jersey seniors by providing a direct credit of up to $6,500 on property tax bills. " https://www.nj.gov/governor/news/news/562024/20240628b.shtml

yes hence the confusion . "pre-fund" doesn't mean FULLY funded. Hence the needed to add more in the 2026 Budget per the article I quoted.
My inside source who is the trainer for the county senior tax service has stated this herself to a friend who works in the program.

I actually think they have been setting aside some $ for this even back in 2024 FY budget. Kinda like an escrow payment.

But don't get me wrong. I'm sure this will get fully funded IF NOT already for 2025.

 

[DHajekRC84]

According to the Governor's office, the 2025 FY budget pre-funds the Stay NJ program for FY 2026:

"Additionally, the budget provides over $200 million to pre-fund the Stay NJ property tax relief program that is expected to launch in FY2026. Once fully implemented, Stay NJ is intended to cut property taxes in half for many eligible New Jersey seniors by providing a direct credit of up to $6,500 on property tax bills. " https://www.nj.gov/governor/news/news/562024/20240628b.shtml

FWIW, $200 million isn't much in the context of a $56 billion budget. The NJ Anchor program, by contrast, costs over $2 billion annually.

yes, btw thanks for that link. One thing is that the Stay Program is NOT $200million. It is something like $1.2 Billion. 2.2(A) + 1.2(S) + .2 (F)

"the FY2025 budget includes more than $3.6 billion for direct property tax relief. This includes the third year of the historic ANCHOR Property Tax Relief Program, which provided more than $2.2 billion to nearly two million residents in the most recent filing season"

here's a good read I just found that covers this and the risks to the program.

https://newjerseymonitor.com/2024/06/27/budget-language-would-ok-funding-of-senior-tax-credit-program-despite-waning-surplus/

 

[RUDutch]

I think the id.me account is only needed for online filing. Paper filing is also an option.

 

[retired711]

I think the id.me account is only needed for online filing. Paper filing is also an option.

That makes sense, so maybe I just should have waited and then filled the thing out by hand. But it probably doesn't hurt to have established an id.me account.

 

[Bagarocks]

That makes sense, so maybe I just should have waited and then filled the thing out by hand. But it probably doesn't hurt to have established an id.me account.

711 thanks fer the post, I just finished the application online. sometimes this State does something right, like putting all 3 applications in combined form.
Once ya got ID.me ya got it fer good.
Few years ago NJ made you get IDme to apply fer unemployment benefits. I have since used it a few times already makes things seemless.
but thanks again fer the heads up and info.

 

[DHajekRC84]

711 thanks fer the post, I just finished the application online. sometimes this State does something right, like putting all 3 applications in combined form.
Once ya got ID.me ya got it fer good.
Few years ago NJ made you get IDme to apply fer unemployment benefits. I have since used it a few times already makes things seemless.
but thanks again fer the heads up and info.

I posted about this almost a month ago and didn't get a single response. Glad there is some interest now.

OT: Inside tip/news on NJ Anchor program.

I didn't want to bury this in the Stock/Investment Thread so figured I would give the heads-up here. My friend who does volunteer Fed and NJ Income taxes for a county group told me about these yet to be announced changes coming. The big change is that for this year's 2025 Anchor program they...

rutgers.forums.rivals.com

 

[retired711]

I posted about this almost a month ago and didn't get a single response. Glad there is some interest now.

OT: Inside tip/news on NJ Anchor program.

I didn't want to bury this in the Stock/Investment Thread so figured I would give the heads-up here. My friend who does volunteer Fed and NJ Income taxes for a county group told me about these yet to be announced changes coming. The big change is that for this year's 2025 Anchor program they...

rutgers.forums.rivals.com

This happens to me, too --I post about something I think is important and no one has a word to say until someone else starts his own thread about it. Sometimes we're ahead of our time!

 

[Jersey Al64]

I just went through the process of submitting an application for NJ Freeze, Anchor, and Stay NJ The good news is that it's one combined application although each program has different eligibility requirements But be aware that you will need to set up an id.me account if you don't have one. That means you will have to submit photos of the front and rear of your driver's license and (at least for me) one other identity document. I then got to speak via video call to a young man who verified my information. Then I got to the actual application. You will need a copy of your 2023 and 2024 tax returns and your property tax bill showing block and lot. Take a deep breath before starting because it is a long process even for those of us who have gotten NJ Anchor benefits in the past. The deadline is October 31. Do your income taxes first, and then you'll be able to cope with the application.

For most homeowners over 65, the big one is Stay NJ, which will reimburse 50% of property taxes up to $6500 for those with household income under $500,000.

Excellent summary of the process. Just completed mine in about an hour. Had the income and property tax info before hand. I did not do an interview for the id.me. They did it with me putting my face in front of the screen where they captured it. Surprised they included social security given that they don’t tax it.

 

[DHajekRC84]

This happens to me, too --I post about something I think is important and no one has a word to say until someone else starts his own thread about it. Sometimes we're ahead of our time!

Rodney Dangerfield syndrome lol. All good sir. I'm glad folks read and responded to yours! Good info to share.

 

[DHajekRC84]

Excellent summary of the process. Just completed mine in about an hour. Had the income and property tax info before hand. I did not do an interview for the id.me. They did it with me putting my face in front of the screen where they captured it. Surprised they included social security given that they don’t tax it.

I think that's part of the harmonization process as Freeze used it prior but Anchor did not. Also a good way for them to actually exclude some without lowering the bar on total income.

 

[retired711]

I think that's part of the harmonization process as Freeze used it prior but Anchor did not. Also a good way for them to actually exclude some without lowering the bar on total income.

Probably the thought is that income is income regardless of its source and so social security income is included in the calculation of eligibility.Similarly, interest that is exempt from New Jersey taxation is included in the calculation as is income exempt as "other retirement income."

BTW, as I'm sure every NJ taxpayer knows, property taxes can be deducted on the NJ return. My understanding is that in the future taxpayers will be able to deduct only the property taxes that were not reimbursed by the program.

Note also that the programs are "in or out." Someone with $499,999 of income qualifies for all of the one-half reimbursement. under Stay NJ. Someone with $500,001 gets nothing; there is no gradual phase-out.

 

[DHajekRC84]

Probably the thought is that income is income regardless of its source and so social security income is included in the calculation of eligibility.Similarly, interest that is exempt from New Jersey taxation is included in the calculation as is income exempt as "other retirement income."

BTW, as I'm sure every NJ taxpayer knows, property taxes can be deducted on the NJ return. My understanding is that in the future taxpayers will be able to deduct only the property taxes that were not reimbursed by the program.

Note also that the programs are "in or out." Someone with $499,999 of income qualifies for all of the one-half reimbursement. under Stay NJ. Someone with $500,001 gets nothing; there is no gradual phase-out.

All so very true.
I actually lost out on both the two prior Anchors because NJ had announced the income levels required AFTER those years and I had simply made some paper conversations of Traditional to Roth. Just a bit over the number.
Had they announced the income levels while the programs were implemented and current year vs. 2 year look back I could have adjusted my conversion to qualify.

I have pretty complex tracking and planning for that exact reason (plus estimated quarterly tax payments)

 

[Jersey Al64]

Probably the thought is that income is income regardless of its source and so social security income is included in the calculation of eligibility.Similarly, interest that is exempt from New Jersey taxation is included in the calculation as is income exempt as "other retirement income."

BTW, as I'm sure every NJ taxpayer knows, property taxes can be deducted on the NJ return. My understanding is that in the future taxpayers will be able to deduct only the property taxes that were not reimbursed by the program.

Note also that the programs are "in or out." Someone with $499,999 of income qualifies for all of the one-half reimbursement. under Stay NJ. Someone with $500,001 gets nothing; there is no gradual phase-out.

Same thing used to apply to the pension income exclusion on NJ tax returns when $100k (which didn’t include social security) was the threshold. One dollar over $100k, no income exclusion. Now there are 3 tiers of 100%, 50%, and 25% exclusions.

 

[DHajekRC84]

Same thing used to apply to the pension income exclusion on NJ tax returns when $100k (which didn’t include social security) was the threshold. One dollar over $100k, no income exclusion. Now there are 3 tiers of 100%, 50%, and 25% exclusions.

and in typical inconsistent fashion this program qualified you as a senior if your were just 62 AND over the 4-5 (?) years in place has never adjusted the income limits for inflation that is like 25% + from the base year. The $150k should be more like $187.5k now. The extra tax on the additional 75% of the $37.5k would more than pay for it.
For the last 3 years I've taken out less money from my retirement accounts than I could and would like to just to mange to the threshold. I would have actually paid more NJ taxes then.

 

[richthedentist]

Freeze and Stay are 65. Anchor is any age as long as you meet the other requirements. My 28 YO daughter who rents has gotten the $400 last couple of years including the 2024 year. She will now benefit from the step up years because she is buying her first home and will get the $1500 Homeowners Benefit for 2026.

Had they not changed the Anchor Base year she would have gotten the $400 for three more years before converting over. Now she will the $1500 two years earlier. (unfortunately for some others the exact opposite would be true if they sold then rented ).

Thanks