Kiplinger

New Jersey Residents to Receive ANCHOR Direct Deposit or Checks in Mail

By Kate Schubel,

9 hours ago

Check your mailboxes and get ready for fall: many New Jersians are receiving something special this season. The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program starts up again.

This year’s program is issuing a record-breaking 1.5 million letters in August with payments to be sent at a later date. The state’s ANCHOR program is designed to provide property tax relief for renters and homeowners.

We’ll cover the program, eligibility requirements, and how much you can expect in your mailbox or bank account.

What is the NJ ANCHOR program 2024?

The ANCHOR program is a tax rebate for New Jersey-eligible residents renting or owning homes. The bill was signed into law two years ago. Since then, millions in the Garden State have been provided property tax relief.

Several eligibility requirements come with the ANCHOR program, including:

Being a New Jersey resident
Your 2021 gross income was not more than $250k as a homeowner and $150k as a renter
You owned or rented your main home since Oct 1, 2021
2021 property taxes were paid on the home, or your rental was subject to property taxes
If you are a renter, your name was on the lease and you paid the rent

After meeting the eligibility requirements, homeowners or renters can file online with a PIN, identification number (ID), and passcode, or by using the “ID.me” verification button on the state’s website .

If you would like to apply, the deadline for new applicants is November 30, 2024.

How do you qualify for the NJ anchor benefit?

The ANCHOR program utilizes data previously collected from taxpayers to determine who qualifies. That means if you filed for ANCHOR last filing season you are automatically enrolled for this year’s filing season. You will receive a letter in August from the state’s Division of Taxation confirming your eligibility.

The August letter will list your personal information from the last ANCHOR payment. If that information is not current, the Tax Division advises that you update your information as soon as possible by filing a new application .

Here are the list of items that would qualify you for a new application:

Your Full Name
Mailing Address
Banking information

The deadline to update your information is September 15, 2024.

Note: If your home was purchased in 2021, or if you altered your deed or had other life changes such as divorce or the death of a spouse, you must file using the Special Circumstance Application instead of the new application form.

How much is the 2024 ANCHOR benefit in NJ?

This year’s ANCHOR payment is based on 2021 income limits and remains the same as last year.

That means if you have been a New Jersey homeowner since 2021….

With $150k in gross income, you will receive $1,500
With $150k to $250k in gross income, you will receive $1,000

…and if you have been a renter in New Jersey since 2021, you will receive $450.

Any ANCHOR program residents aged 65 or older will receive a bonus of $250 in addition to the above applicable payment.

When can I expect the NJ ANCHOR payment?

Residents can expect letters confirming their enrollment by the end of August. The actual payments will be made on a rolling basis beginning in November.

To check the status of your check, or for general New Jersey tax questions, call the ANCHOR hotline at (609) 826-4282 or 1-888-238-1233.

Starting this year, the state’s Division of Taxation has hired more agents to assist callers with the hotline. There is also an automatic callback feature, allowing you to be placed in a queue rather than wait on hold.

You can also visit one of the state’s Regional Information Centers in person for more information.

Why was my ANCHOR tax relief higher than expected?

The standard ANCHOR check is one way New Jersians benefit from property tax relief, but you may be eligible for more money than initially thought.

For example, if you are age 65 or older, and are not required to file a NJ Gross Income Tax return , you may be eligible for a property tax credit of up to $50. This tax credit will be automatically applied to your next ANCHOR payment if you have not already claimed your $50.

You may also have received a “Senior Freeze” program check . Through this program, eligible New Jersey residents can effectively “freeze” their property tax. See if the state's property tax freeze benefit applies to you.