You may qualify for either a deduction or a refundable credit when filing an Income Tax return. The property tax deduction reduces your taxable income, it is reported on your NJ1040 form on line 41.
The property tax credit reduces your tax due because it is subtracted directly from your tax liability. The benefit is a refundable credit of $50. The credit will show on form NJ 1040 line 56.
You are eligible for a property tax deduction or a property tax credit only if:
You were domiciled and maintained a primary residence as a homeowner or tenant in New Jersey during the tax year; and
Your primary residence , whether owned or rented, was subject to property taxes, that were paid either as actual property taxes or through rent; and
If you rented your primary residence , it had its own separate kitchen and bathroom that you did not share with occupants of other units in the building, if there were other units;
If your primary residence was a unit in a multi-unit property you owned, the property had no more than four units and no more than one of those was a commercial unit;
Your gross income is more than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return), or you (and/ or your spouse/civil union partner if filing jointly) were 65 or older or blind or disabled on the last day of the tax year.