In light of recent changes to New Jersey's ANCHOR Rebate Program, we wanted to provide a detailed update to help you better understand the program's new features and how they may impact your financial planning.
What is the ANCHOR Rebate Program?
Before diving into the changes, let's refresh what the ANCHOR Rebate Program is all about. The program is designed to provide tax relief to New Jersey residents who either own or rent their primary residence. Eligibility is determined based on your residency, age, and income.
2023 Updates: Automation and Auto-Enrollment
New for 2023, New Jersey has rolled out an automated application system. If you filed an Anchor application in 2022, you could be auto-enrolled for 2023. This means you won't need to file a new application to receive benefits this year. However, if you did not receive a notice of auto-enrollment by the beginning of September, it’s best to file a new application to be safe. The Anchor program has been rife with processing errors in the past, so it is important to check your application status in the NJ Anchor portal.
Updating Information
For those auto-enrolled, if your income, address, or banking information has changed since last year, you'll have until September 30th to update these details. Information can be updated by filing a new application.
The Important Dates for 2023
Deadline to File: December 29, 2023
Deadline to Make Changes for Auto-Enrolled: September 30, 2023
Date Checks Sent Out for Auto-Enrolled: November 1, 2023
Checks for Normal Applicants: Within 90 days of their filing date
How Much Can You Benefit?
The Anchor rebate benefit amount varies based on your 2020 income and whether you were a renter or homeowner in NJ. The new benefit amounts are:
Annual income under $150,000: $1,500 for homeowners / $450 for renters
Annual income between $150,000 and $250,000: $1,000 for homeowners / $200 for renters
NJ Residency: Applicants must have owned or rented a home in New Jersey by October 1, 2020 to be eligible.
Additional Benefits for Seniors
Starting this year, New Jersey applicants over the age of 65 will receive an additional $250 benefit without additional action needed.
Where to Apply
The Anchor Rebate application can be found online at NJ Treasury Taxation Anchor.
Wrapping Up
Navigating tax incentives can be complicated, but that's what we're here for. If you have any questions or would like to discuss how these changes affect your financial plan, feel free to reach out.
DEVIN STARR is an Associate Wealth Advisor at Novi Wealth Partners