14 Oct Will N.J. treat my ANCHOR payment as income?

Q. Will the payment received next year under the new ANCHOR plan be taxed as income?
— Homeowner

A. The ANCHOR property tax benefit replaces the Homestead Rebate.

Because of the income requirements and that there is no age limit, about three times more New Jerseyans will benefit from the program, the Treasury Department said.

Married couples with 2019 gross income of up to $150,000 are eligible, as are renters who earn up to $150,000. Homeowners who earn between $150,000 and $250,000 will get a partial benefit.

As your question suggests, it would be quite unpleasant to be taxed on a benefit that’s supposed to take the bite out of the state’s high property taxes.

But the state Treasury Department says the benefit is not reportable on your New Jersey income tax return.

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This story was originally published on Oct. 14, 2022.

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