31 Jul Why does the ANCHOR benefit run several tax years behind?

Q. For the ANCHOR program, and the prior Homestead Rebate program, why are the programs several years removed? For example, the next ANCHOR program payment will be for the year 2020. And yet, the application will be this fall in 2023, and the payment will be next year in 2024. Families are looking for relief from their current local taxes, based on their current earnings, not from several years ago.
— Taxpayer

A. That’s a question that leaves taxpayers scratching their heads year after year.

You’re correct that applications for these programs have been — and will probably continue to be — for past tax years.

The Homestead Rebate was born when the state instituted its first income tax in the mid 1970s.

As you can imagine, the income tax was pretty unpopular.

Funding for the Homestead Rebate, though, would depend on the budget.

Gov. Chris Christie delayed the benefit twice for budgetary reasons, and the delays began.

So the ANCHOR benefit, which has replaced the Homestead Rebate, stuck to that later schedule. The benefits paid out earlier this year were for the 2019 tax year, and the ones paid out next year will be for tax year 2020.

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This story was originally published on July 31, 2023.

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