Unlocking Property Tax Relief: New Jersey’s 2020 ANCHOR Program Benefits for Homeowners and Renters

By Kevin Jablonski, Senior Associate

New Jersey Homeowners and Renters, did you receive a letter from NJ regarding your 2020 ANCHOR benefit? If so, then congrats! Your application has automatically been filed for the 2020 ANCHOR program.

The ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program was instituted in 2022 and has evolved, check out the 2024 ANCHOR program benefits breakdown for homeowners and renters to see how payments and eligibility have changed.

If you qualify for the ANCHOR program for renters in NJ or if you’re a homeowner, you’ll receive a payment based on your income:

1. NJ homeowners with income of $150,000 or less will receive $1,500.
2. NJ homeowners with income of more than $150,000 and up to $250,000 will receive $1,000.
3. Residential renters with income of $150,000 or less will receive $450.

Homeowners and renters who are ages 65 and older will now receive an additional $250 on whichever benefit they fall under.

If you received this NJ letter, then your ANCHOR 2019 application has been automatically submitted for the NJ ANCHOR program 2020. The letter will also contain information on how to change any information regarding your application or re-submit if necessary.

If you were automatically enrolled but need to make changes, you must file by the deadline. Wiss provides an update on when the ANCHOR application deadline was extended. Applicants who were not automatically enrolled have until December 29th of this year to get their applications filed. Payments are expected to go out about 90 days following the submission of the application so get your applications in as fast as possible!

If you need assistance with the application or have questions about the NJ ANCHOR Program 2020, our tax advisory experts at Wiss are here to help. Contact us today to ensure you don’t miss out on these important benefits!

Refer to the NJ Division of Taxation’s website for more information: https://www.state.nj.us/treasury/taxation/anchor/

FAQs on New Jersey’s 2020 ANCHOR Program Benefits

1. What is the ANCHOR Program in New Jersey?

The ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program is a state property tax relief initiative designed to assist eligible homeowners and renters by offsetting a portion of their property tax burden.

2. Who qualifies for the 2020 ANCHOR benefit?

For the ANCHOR benefit covering the 2019 tax year (processed starting in 2022), you qualify if you were a New Jersey resident on October 1, 2019, and owned or rented your principal residence in the state. You must also meet income thresholds ($150,000 or less for homeowners, $75,000 or less for renters) and property-specific requirements, such as having paid property taxes.

3. How much relief can I expect?

For the 2019 tax year ANCHOR benefit, eligible homeowners with incomes up to $150,000 may receive up to $1,500, those with incomes between $150,001 and $250,000 may receive up to $1,000, and renters with incomes up to $150,000 may receive $450. Benefit amounts depend on household income and residency status and may vary in subsequent years.

4. When is the deadline to apply?

The application deadline for ANCHOR benefits is set annually by the New Jersey Division of Taxation, typically in the fall or winter of the following year. Check the Division of Taxation’s website for the latest deadlines, as missing them may affect eligibility.

5. How are payments made?

Payments are issued either via direct deposit or check, depending on the preference selected during the application process. These are not credits but direct rebates from the state.

6. Do I need to reapply every year?

Yes, eligible residents must file an application for each benefit year. This ensures that income and residency criteria are up to date.

7. Will receiving the ANCHOR benefit affect my taxes?

No. The ANCHOR payment is not considered taxable income for federal or state tax purposes.

8. What if my circumstances have changed since 2020?

Eligibility for the ANCHOR benefit is based on your residency, income, and property status as of October 1 of the relevant tax year (e.g., October 1, 2019, for the first benefit cycle). Changes in your circumstances after that date do not affect that year’s eligibility but may impact future benefit applications.

9. Where can I check my eligibility or file my application?

You can file and review your status through the New Jersey Division of Taxation’s ANCHOR portal.

10. Can Wiss help with state tax strategy or planning?

Absolutely. Wiss offers tax advisory services, including guidance on state and local tax opportunities, relief programs, and long-term tax minimization strategies. Explore our tax advisory solutions or contact us directly to talk with an expert.

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