02 May What happens with a Roth conversion on Stay NJ application?

Q. For property taxes and the new PAS-1 application: For tax year 2022 and 2023 on form PTR-1, on page 8, last paragraph of Line B information, it states not to use income from a Roth IRA conversion from an existing traditional IRA to Roth IRA among other exceptions. The 2024 PAS-1 makes no mention of how to use this credit if it is indeed still a credit. Can you still use the credit?
— Taxpayer

A. We asked the Treasury Department about this before.

“Roth IRA rollovers are not taxable for New Jersey income tax purposes,” a spokesperson said. “However, under the amended Stay NJ Act, income for Stay NJ eligibility includes Roth IRA rollovers, as defined by its law.”

But, a rollover is not considered income for ANCHOR purposes.

“The rollover you described would be considered income for both the Stay NJ and Senior Freeze program based on the P.L. 2024, c.88,” the spokesperson said. “However, the law did not change in the income standards for the ANCHOR program. For ANCHOR, income only includes what would be counted as gross income on the New Jersey income tax return.”

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This story was originally published in May 2025.

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