ANCHOR season begins soon: Homeowners and renters in NJ to receive automatic payments up to $1,750

If you are a New Jersey resident, you want to pay extra attention to your mail starting Monday.

That's when the popular ANCHOR property tax relief program officially kicks off. The Treasury Department's Tax Division will begin mailing letters to about 1.5 million New Jerseyans to confirm their automatic eligibility for this season's benefit.

The program gives renters a one-time payment from $450 to $700 and homeowners a payment from $1,000 to $1,750.

If the personal information listed in the letter (name, mailing address, and banking information if their benefit was distributed via direct deposit) has changed since their last ANCHOR payment, taxpayers will need to file a new application by September 15, 2024.

"The ANCHOR program continues to deliver on our promise of increasing affordability for millions of New Jerseyans. I'd like to thank the hardworking staff at the Department of the Treasury, particularly the Division of Taxation, for their efforts to make this crucial program convenient and accessible," said Gov. Phil Murphy. 

Last season's program covering the 2020 tax year made history as the state's single largest property tax relief initiative, with over $2.1 billion in benefits distributed to more than 1.8 million homeowners and renters.

Here's what you need to know about the program this season.

What is Affordable New Jersey Communities for Homeowners and Renters (ANCHOR)?

This program provides property tax relief to New Jersey residents who own or rent property in New Jersey as their principal residence and meet certain income limits. 

This season marks the third year the State will distribute ANCHOR benefits. 

How much is the payment?

Homeowners

2021 Gross Income (NJ-1040 Line 29)	In 2021, age 64 or younger	In 2021, age 65 or older
$150,000 or less	$1,500	$1,750
$150,001 - $250,000	$1,000	$1,250

Renters

Age in 2021	64 or younger	65 or older
Benefit Amount	$450	$700

When will I receive my ANCHOR benefit?

All payments will be issued on a rolling basis beginning in November. 

How can I apply for this benefit?

Homeowners

• Eligibility
  • New Jersey homeowners who meet the requirements based on 2021 residency, income, and age, are eligible for an ANCHOR homeowner benefit if:
    • You were a New Jersey resident; and
    • You owned and occupied a home in New Jersey that was your principal residence (main home) on October 1, 2021; and
    • 2021 property taxes were paid on that home; and
    • Your 2021 New Jersey gross income was $250,000 or less.

• When is the deadline?
  • All applicants have until Saturday, Nov. 30, 2024, to file applications.
• Where can I apply?
  • Most homeowners may file online with an identification number (ID), PIN, and Passcode, or by using the ID.me verification function. However, if you bought your home in 2021, altered your deed, or had certain life changes such as a divorce or death of a spouse, you must file using the Special Circumstance Application.

Renter

• Eligibility
  • New Jersey renters who meet the requirements based on 2021 residency, income, and age, are eligible for an ANCHOR renter benefit if:
    
    • You were a New Jersey resident; and.
    • Your 2021 New Jersey gross income was not more than $150,000; and
    • Your name was on the lease or rental agreement; and
    • You paid rent; and
    • You rented and occupied a residence in New Jersey that was your principal residence (main home) on October 1, 2021; and
    • The rental property was subject to local property taxes (see Qualified and Non-Qualified Rental Properties).
• When is the deadline?
  • All applicants have until Saturday, November 30, 2024, to file applications.
• Where can I apply?
  • Renters may file using the online option, and do not need an ID and PIN.

When is the deadline to apply?

The deadline to apply is Nov. 30, 2024.

The Division will send ANCHOR Application Mailers with information on how to apply for the program to over two million residences beginning August 26.

What are the options to send the application?

The Division of Taxation continues to improve the process to make applying for the ANCHOR program more convenient and accessible. New this season, the Division has effectively eliminated the necessity for paper applications and launched a new online application for residents required to provide supporting documentation, who would have otherwise needed to file by paper in past ANCHOR seasons.

These applicants will now be able to securely upload their documents online. Paper applications remain available for those who prefer, or have special circumstances.

How to prevent scams?

As part of ongoing efforts to prevent fraud and safeguard taxpayer dollars, many applicants will need to go through an extra level of identity verification when applying for the ANCHOR benefit this season. Those taxpayers include:

• New applicants;
• Anyone searching for their ANCHOR ID/PIN at anchor.nj.gov;
• Anyone who did not receive an ANCHOR Benefit Confirmation Letter or Application Mailer;
• Anyone who no longer has their ANCHOR letter/mailer or the information provided on it.

In these cases, taxpayers will be prompted to create or use an existing ID.me account to verify their identity. Applicants also have the option of visiting one of the Division of Taxation's Regional Information Centers to verify their identity by showing a driver's license, passport, or other qualifying material. Additional information will be provided at anchor.nj.gov.

Where can I find more information?

The Division of Taxation has doubled the number of agents available to assist callers to the ANCHOR hotline, as well as implemented an automatic callback feature, allowing residents to be placed in a queue rather than waiting on hold.

Information about the program is available at anchor.nj.gov. Applicants may also call the ANCHOR hotline (609) 826-4282 or 1-888-238-1233, or get in-person assistance at a Regional Information Center.