NJ Property Tax rebates / recoveries

Forum|Forum|1 year ago
February 4, 2025
2 replies
0 views

When I filed my 2023 Federal Tax Return I used the Standard Deduction; yet there's a Schedule 1 attached that year listing Additional Income, Line 8z. It indicates a 'rebate' amount for my NJ Senior Freeze along with the words NEW JERSEY REAL ESTATE.

Now, I'm preparing my 2024 Federal Tax Return, and I'm again using the Standard Deduction. Do I need to include the NJ property tax rebates (2 of them) on a Schedule 1 again? I was told that if I used a Standard Deduction in the prior year (2023), I would not need to include my NJ rebates for property tax on my 2024 Federal Return.

Best answer by rjs

The Senior Freeze payment that you received in 2024 was a refund of real estate tax that you paid in 2023. If you used the standard deduction on your 2023 federal tax return you do not report the Senior Freeze payment on your 2024 federal tax return.

The ANCHOR benefit that you received in 2024 was a refund of real estate tax that you paid in 2021. (Yes, 2021. That is not a typo.) If you used the standard deduction on your 2021 federal tax return you do not report the ANCHOR benefit on your 2024 federal tax return.

For reporting property tax refunds that you received in 2024 on your 2024 tax return, it doesn't matter whether you use the standard deduction or itemized deductions on your 2024 tax return.

When the New Jersey tax return asks how much property tax you paid in 2024, enter the base year amount for your Senior Freeze.

rjsAnswer

Employee

For reporting property tax refunds that you received in 2024 on your 2024 tax return, it doesn't matter whether you use the standard deduction or itemized deductions on your 2024 tax return.

When the New Jersey tax return asks how much property tax you paid in 2024, enter the base year amount for your Senior Freeze.

fanfare

Employee

@rjs

You're wrong about the ANCHOR rebate. It has nothing to do with your property tax paid three years ago..

See NJ Div of Taxation for eligibility rules.

rjs

Employee

@fanfare

You are looking at the eligibility rules for the 2025 payment. They changed the rules this year to get it in sync with the other property tax relief programs. Here are the eligibility rules for the 2024 payment, from the Division of Taxation web site.

"You are eligible for an ANCHOR benefit as a homeowner 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, 2021; and
The 2021 property taxes were paid on that home; and
Your 2021 New Jersey gross income was not more than $250,000."