This week comes with good news for all Americans who live in New Jersey, as they will get a direct payment worth up to $1,500 if they own a home and meet special requirements according to the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program.
This property tax relief scheme was introduced in 2022 to modernize and broaden the Homestead Benefit. Renters and homeowners who satisfy residency and income standards can receive property tax relief payments of between $450 and $1,500, with an extra $250 available to seniors. The program for this season covers the 2021 tax year.
Direct payment of $1,500 for New Jersey residents if they meet these requirements
With more than $2.1 billion in benefits given to more than 1.8 million homeowners and renters, the program last season became the largest property tax relief program in the State of New Jersey.
As the program’s popularity continues, the New Jersey Department of the Treasury urges interested parties to assist New Jerseyans in applying for and receiving ANCHOR’s vital property tax relief.
The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) initiative aims to decrease the impact of various taxes. It specifically provides property tax relief to the state’s homeowners and renters.
Renters may get up to $450, while homeowners may receive $1,000 to $1,500, contingent on their income. Not everyone, though, is qualified for this advantage. To get the direct payment, the following conditions need to be fulfilled:
- Be a resident of New Jersey.
- Homeowners must have paid taxes on their primary residence during the relevant tax year. Vacation homes and other income property are exempt from this rule.
- Renters must earn less than $150,000 per year and have rented a residence in New Jersey during the relevant period.
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When will New Jersey residents receive their direct payment?
The direct payment is already being made to those who satisfied the requirements and completed their applications by December 6, 2023.
Payments will begin to be distributed in December 2024 and will continue through 2025. After the application is submitted, direct payment checks are typically mailed 90 days later.
It’s likely that you were automatically registered and don’t need to do anything extra if you’ve previously benefited from this.
Renters will be given a purple color code, and homeowners will be given a green one. According to the ANCHOR program, residents will receive the following payment amounts:
- Owners with an income of less than $150,000 receive $1,500.
- Homeowners earning between $150,000 and $250,000: $1,000.
- Renters with a salary less than $150,000 pay $450.
Don’t forget that if you have not received your direct payment within the projected 90 days, more information may be necessary, or the validation procedure may take longer than expected. In that instance, contact the New Jersey Department of Revenue for more information on the status of your payment.
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Also keep in mind that as part of ongoing efforts to avoid fraud and protect public resources, many candidates may be required to undergo further identity verification when applying for the ANCHOR benefit this season. The taxpayers include:
- New applicants; Anyone searching for their ANCHOR ID/PIN:
- Anyone who has not yet received an ANCHOR Benefit Confirmation Letter or Application Mailer;
- Anybody who has lost their ANCHOR mailer or letter and the data on it.
Taxpayers will be asked to confirm their identity in these situations by creating a new ID.me account or using an existing one.
A driver’s license, passport, or other acceptable document can be shown at any of the Division of Taxation’s Regional Information Centers by applicants to confirm their identity.
For additional information, residents can refer to the official website of the ANCHOR program.