New Jersey residents are currently presented with a limited-time opportunity to benefit from a significant homeowner’s rebate. With only 11 days left, those eligible are encouraged to take advantage of the average $971 rebate offered through the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program. This initiative is designed to provide property tax relief to New Jersey homeowners and renters, depending on their income levels.
The deadline to apply for this rebate is fast approaching, with applications due by December 29. After this date, rebates will be issued progressively. The New Jersey Division of Taxation estimates that recipients can expect their rebates about 90 days following their application submission. The process is streamlined and entirely online for ease of access.
Tax relief efforts in New Jersey ANCHOR program
Originally established as an alternative to the New Jersey Homestead Rebate program, the ANCHOR program now extends to nearly 2 million taxpayers. To date, the Department of Treasury has reported that over 1.6 million residents have benefitted from the program, with some rebates reaching up to $1,750. Tax expert Zack Hellman, from Tax Prep Tech, in a Newsweek interview, highlighted the significant role of the ANCHOR program in easing the financial pressures of property taxes and rent, particularly in the current economic environment shaped by the end of federal stimulus measures. He noted the program’s importance in providing relief in these challenging times.
In the program’s first phase, around 1.7 million qualified homeowners and renters received payments beginning last spring. This cycle sees an increase in the maximum rebate amount by $250.
For senior homeowners earning up to $150,000, a $1,750 rebate is available, while those in the same age bracket earning between $150,000 and $250,000 can receive $1,250. Senior renters with an income up to $150,000 are eligible for a $700 rebate.
The program also caters to younger demographics. Homeowners under 65 with annual incomes up to $150,000 are eligible for a $1,500 rebate, and those earning between $150,000 and $250,000 can receive $1,000. Renters under 65 with incomes up to $150,000 qualify for a $450 rebate.
New Jersey’s approach to tax relief, especially after the federal stimulus period, is not unique, but it stands out. Other states, including Alabama and Minnesota, have also launched rebate programs, often leveraging budget surpluses. However, New Jersey has implemented this program despite facing one of the largest deficits in the country.
Financial education expert Scott Bauer, CEO of Prosper Trading Academy, commented to Newsweek on the distinctiveness of New Jersey’s program. He pointed out that while other states used budget surpluses for their rebates, New Jersey’s choice to offer aid amidst a substantial deficit is notable. Bauer acknowledged that this rebate would assist many New Jersey residents, but it also raises concerns about the state’s growing financial challenges.