04 Sep I love that the ANCHOR benefit is not taxable, but why?

Q. I love that the ANCHOR benefit is not taxable, but why?
— Homeowner

A. Good question.

The state Division of Taxation website says it’s not taxable.

“ANCHOR benefit payments are not reportable as New Jersey income,” it says.

It lowers your property tax bill, so it’s not income.

Gov. Phil Murphy specifically called it “relief,” as the title of the benefit indicates.

“While the state does not set property taxes, we believe that we must take action to offset costs and make life in New Jersey more affordable,” he said. “Through the ANCHOR Property Tax Relief Program, we can provide real support for families and seniors, helping them stay in the homes and communities they love.”

“It’s not income because it’s relief regarding taxes,” said Evan Drury, a chartered financial consultant with U.S. Financial Services in Fairfield.

You should always check with a tax preparer with concerns about your specific situation.

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This story was originally published on Sept. 4, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.