I got the ANCHOR benefit. Is it taxed as income?

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

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

The first benefit year, paid out in 2023, was for the 2019 tax year. The next one will be paid in 2024 and is for the 2020 tax year.

The money is welcome relief for those who believe their property taxes are too high. (And don’t we all?)

But you don’t have to worry about the benefit being taxable.

It’s not.

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 July 28, 2023.

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