New Jersey residents, coping with higher prices for just about everything, are eagerly awaiting news about the next ANCHOR property tax benefit.
So when is it coming?
Soon, we think.
The next ANCHOR benefit would cover the 2021 tax year, and it will be funded in the record $56.6 billion state budget expected to be voted on in the next few days by state lawmakers and then signed by Gov. Phil Murphy.
Back in February, Murphy asked the state Legislature to approve another year of the popular tax break at the same payment levels as last year.
The more than $2 billion in funding would pay up to $1,500 for eligible homeowners and $450 to renters, with an extra $250 for seniors.
The state Treasury Department has already been at work on how to deliver the benefit, which was paid to more than 1.85 million residents for the 2020 tax year, totaling nearly $2.2 billion.
While the agency won’t yet give definitive dates, the process is expected to start this summer.
Last year, in mid-August, homeowners and renters for whom the Division of Taxation already had eligibility information received letters saying they would receive their benefit automatically and they did not need to apply. By the end of that month, Taxation mailed application packets — green to homeowners and purple to renters — to people who still needed to apply.
The process should work similarly for the next benefit.
Even if you receive one of those letters or application packets, if your situation has changed, such as if your spouse died, you had a divorce or if you moved, you’ll need to correct your status with the agency.
You’ll be able to do that online once the website goes live for the 2021 benefit year. That system will tell you whether your application has been filed, was paid or is still pending.
If you don’t receive a packet, you may be able to file online, though some taxpayers with specific situations — such as if you had a name change — will probably have to file a paper application.
Those can be downloaded from the state website, printed and mailed, though you’ll have to wait for the agency to put the 2021 forms online.
Last year, the state said most eligible residents would get their payments by Nov. 1, notable because that was six days before an election in which all 120 seats in the state Legislature, controlled by Democrats, were up for grabs.
The first ANCHOR payments were made by direct deposit on Oct. 12. Subsequent payments, both by check and by direct deposit, were released in waves.
Going forward, there could be big changes to the ANCHOR benefit as it is be coordinated with the state’s other property tax breaks — the Senior Freeze and the new Stay NJ benefit. Stay NJ isn’t scheduled for its first payout until 2026. While lawmakers have wrangled some additional funding in the current budget to support the new tax break, it’s expected to be part of a big fight over spending next year.
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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Follow her on X at @KPMueller.
