1. New Jersey Property Tax Relief Programs
Notes/Handouts
4/6/2017
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
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008

2. NJ Property Tax Relief Programs
Notes/Handouts
4/6/2017
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
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008

3. NJ Property Tax Deduction or Credit
Notes/Handouts
4/6/2017
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)
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008

4. Homestead Benefit Program
Notes/Handouts
4/6/2017
Homestead Benefit Program
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)
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008

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
11/30/2010
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
11/30/2010
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…
11/30/2010
NJ Training TY2010 v1.0

8. Must submit proof of taxes paid with PTR’s
Notes/Handouts
4/6/2017
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
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008

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
11/30/2010
NJ Training TY2010 v1.0

10. NJ Property Tax Relief – Other All Administered By Local Municipality
Notes/Handouts
4/6/2017
NJ Property Tax Relief – Other All 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.
11/30/2010
NJ Training TY2010 v1.0
NJ Training TY 2008