Brown Financial LLC

2021 NJ Resident Anchor Benefit (formerly Homestead Rebate)

NJ website: ANCHOR Benefit Welcome - NJ Taxation (state.nj.us)

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New Jersey has continued the annual ANCHOR property tax benefit program for the 2021 year (formerly known as the Homestead Rebate) and has started mailing out 2021 ANCHOR Benefit Confirmation Letters, which you may have received by now. If not, be on the lookout for this mailing! You need to review it carefully to make sure info like your name and bank account are correct. If everything is correct, then NJ will automatically file the 2021 application for you and you don’t need to do anything else.

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However, if the info in the Confirmation Letter is wrong, such as if your name or bank account info has changed, YOU MUST FILE AN APPLICATION BY SEPTEMBER 15th, 2024, in order to receive your payment, and you will need the ID, PIN, and Passcode numbers found near the bottom of your letter. NJ will NOT make any adjustments to your name, address, or bank account after September 15th, 2024, and you may lose out on the 2021 benefit payment. You can update your information on the NJ website or by using the QR code on your letter. Please remember to save your Confirmation # at the end as proof of your updated filing!

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Before calling NJ or our office with questions, please review the state’s Frequently Asked Question (FAQ) page. They have a lot of useful information, including a list of situations in which a Special Circumstances Application must be filed online or on paper, such as a deceased spouse/homeowner, or a home that was newly built in 2021, a property held in trust, etc. (see the bottom of this email). They also have guidance for people who did not receive a Benefit Confirmation Letter. 

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The final deadline to file any type of application to claim the 2021 ANCHOR Benefit is Saturday, November 30th, 2024. Homeowner and renter applications filed after that date will not be processed. NJ makes no exceptions. 

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If you need to file an application online or on paper, we strongly recommend NOT waiting until the last minute to file, since some filers will need to mail or upload supporting documentation or verify their identity using “ID.me.” If you’ve had to create an IRS account or file for NJ unemployment in the past couple years, you’ve most likely already created an ID.me account. For anyone who hasn’t yet created an ID.me account but needs to, the process usually takes 5-15 minutes, but can be longer. Renters who don’t receive a Confirmation Letter or a purple mailer will need to have an ID.me account in order to file online. 
 

As a refresher, here is an overview of the program requirements for homeowners:

• You must have owned or occupied your principal residence in NJ on October 1, 2021.

• The 2021 property taxes on your principal residence were paid.

• Your 2021 NJ Gross Income (line 29 of your 2021 NJ tax return) was $250,000 or less. For renters, the 2021 income limit is capped at $150,000.

• For renters, your name must have been on the lease and you must have paid rent during 2021.

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How much will your Benefit be?

Homeowners:

2021 Gross NJ Income (NJ-1040 line 29) $150,000 or less

In 2021, age 64 or younger: $1,500

In 2021, age 65 or older: $1,750

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2021 Gross NJ Income (NJ-1040 line 29) $150,001 - $250,000

In 2021, age 64 or younger:  $1,000

In 2021, age 65 or older:  $1,250

Renters:

Age in 2021

64 or younger: $450

65 or older: $700

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Homeowners - Special Circumstances Application
NJ says: “You must file using the Special Circumstances Application along with required documentation if:

• You shared ownership of your principal residence (main home) with someone who was not your spouse/civil union partner and your percentage of ownership is not preprinted on your mailer;

• Your main home was a unit in a multi-unit property that you owned;

• You received an ANCHOR information mailer or Anchor Benefit Confirmation letter for the correct property, but the name on the mailer or letter 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 are filing for a property held in trust;

• You occupied a newly constructed home on October 1 for which you did not receive an ANCHOR mailer or Anchor Benefit Confirmation letter 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;

• You are unable to find your ID and PIN.”