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New Jersey Property Tax Relief Programs

NJ-2 Property Tax Relief Programs v1.0 VO.ppt. New Jersey Property Tax Relief Programs. Homestead Benefit Tenant Rebate Senior Freeze (PTR) Other. LEVEL 2 TOPIC. NJ Property Tax Relief Programs. Property Tax Deduction / Credit (Covered as part of NJ Return preparation)

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New Jersey Property Tax Relief Programs

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  1. NJ-2 Property Tax Relief Programs v1.0 VO.ppt New Jersey Property Tax Relief Programs Homestead Benefit Tenant Rebate Senior Freeze (PTR) Other LEVEL 2 TOPIC NJ Training TY2010 v1.0

  2. NJ Property Tax Relief Programs • Property Tax Deduction / Credit • (Covered as part of NJ Return preparation) • Homestead Benefit Program • aka Homestead Rebate / NJ Saver Rebate / FAIR Rebate • Tenant Rebate • Property Tax Reimbursement (PTR) • Aka Senior Freeze • Other • Deduction for Senior Citizens / Disabled • Deduction for Veterans • Exemption for Disabled Veterans NJ Training TY2010 v1.0

  3. NJ Property Tax Deduction or Credit Homeowners and Tenants NJ taxable income deduction or tax credit ($50), whichever is most beneficial, based on real estate tax or rent paid Calculated on schedule 1, Property Tax Deduction/Credit, included with NJ 1040 Income limitations may reduce deduction / credit (if under 65) NJ Training TY2010 v1.0

  4. Homestead Benefit Program NJ Training TY2010 v1.0 Property tax reduction for Homeowners who occupied their principal residence on Oct 1st Paid Property tax 2010 Property Tax reduction application mailed in Aug/Sep 2010 for completion and submission (based on principal residence on Oct 1st 2009)

  5. Homeowner Changes for 2010 • Name Change “BENEFIT’ • No payments in 2010 • Benefits Received • Reduction in 2011 local property tax beginning with 2nd quarter payment (May 1, 2011) • Cash Payment in 2011 if: • Homeowner on 10/1/09 but sold in 2010 • If requested cash payment on Application then will get check in 2011 • If cash payment NOT requested on Application, then new owner will get a reduction on their 2011 local property tax beginning with 2nd quarter payment (May 1, 2011) • Condo and Coop owners on 10/1/09 • Based on ownership percentage, but calculated and paid by check to inidividual NJ Training TY2010 v1.0

  6. Impact on Federal return for Homeowners • For 2010 – No Benefits/Rebates paid, so no need to handle on federal return (Sch A or 1040, line 21) • For 2011 – Tax billed and paid will be reduced by Benefit amount, so no need to handle on federal return • Except in situations where actual check received – see previous slide NJ Training TY2010 v1.0

  7. Tenant Rebate • Occupied principal residence as tenants on Oct 1 • Paid Rent (18% of rent = imputed Property Tax) • If get certain types of Rent subsidies, then may not be eligible for Tenant Rebate • Complete form TR-1040 • Part of NJ-1040 • Or separate return • No Tenant Rebate payments in 2010 because they were not funded in 2010 budget • May (or may not) be funded in future year budgets – stay tuned… NJ Training TY2010 v1.0

  8. PTR (NJ Senior Freeze) “Freezes” local property tax in first year of eligibility (Base Year) Total local property tax paid to local municipality State of NJ reimburses homeowner for taxes paid in excess of base year taxes Forms – PTR 1, Property Tax Reimbursement, completed by TP in first year eligible PTR 2 – Sent to TP with certain pre-printed data from State of NJ in subsequent year(s) and completed by TP Must submit proof of taxes paid with PTR’s Eligibility Age 65 or older, or receiving Federal S/S Disability Benefits Lived in NJ for at least last ten years Owned and lived in home for at least last three years Meet total income limits for base year and each succeeding year NJ Training TY2010 v1.0

  9. PTR Changes for 2010 • 2010 Payments (For 2009 and Base Year Eligible) • Only made to TPs who received PTR reimbursement in 2009 • Amount received cannot exceed amount received in 2009 • 1st time Applicants in 2010 (Must meet eligibility requirements for 2009 and 2008) • Should have submitted PTR-1 by 11/1/10 • Will NOT receive payment in 2010, but WILL establish eligibility and base year for future • Should receive PTR-2 in 2011 • Note - Total Income Limitation for 2009 retroactively reduced to $70,000 (was $80,000) • Impact – TP with Total Income >$70,000 but < $80,000 in 2009 currently not eligible for PTR NJ Training TY2010 v1.0

  10. NJ Property Tax Relief – OtherAll Administered By Local Municipality Annual Property Tax Deduction for Senior Citizens, Disabled Persons:Annual deduction of up to $250 from property taxes for homeowners age 65 or older or disabled who meet certain income and residency requirements. Annual Deduction for Veterans:Annual deduction of up to $250 from taxes due on the real or personal property of qualified war veterans and their unmarried surviving spouses/surviving civil union partners/surviving domestic partners. Property Tax Exemption for Disabled Veterans:Full exemption from property taxes on a principal residence for certain totally and permanently disabled war veterans and their unmarried surviving spouses/surviving civil union partners/surviving domestic partners. Unmarried surviving spouses/surviving civil union partners/surviving domestic partners of servicepersons who died on wartime active duty may also qualify. NJ Training TY2010 v1.0

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