Politics & Government

Tax Reimbursement Deadlines Approaching

State Department of Treasury encouraging eligible residents to apply for Homestead, Senior Freeze benefits

The deadline to apply for two state-funded property tax benefit programs is fast approaching, and Department of Treasury officals say they expect to offer bigger refunds to a wider field of taxpayers this year.

New Jersey residents have less than a month to apply for the Homestead benefit and the Senior Freeze benefit, which can offer seniors and others hundreds in property tax reimbursements.

The Homestead benefit is offered to residents who meet certain income restrictions, and comes in the form of a credit on 2012 tax bills. The Department of Treasury estimates the average Homestead credit will be $475, a press release said – double last year’s average payout.

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Senior Freeze benefits reimburse those who are 65 and older or disabled for property tax increases they’ve already paid. Your payout is the difference between the taxes you paid for the “base year” – the first year you were eligible – and the amount you paid for the current year. This year, the average reimbursement is expected to be $1,152.59, according to Treasury, and eligibility requirements have been relaxed this year, so more people can apply.

The deadline for filing for both benefits is Oct. 31, 2011. Residents can file online or call one of two Treasury hotlines for assistance. For help applying for the Homestead benefit, call 888-238-1233 between 8:30 a.m. and 5:30 p.m., Monday through Friday. Senior Freeze applicants can call 800-882-6597 between 8:30 a.m. and 4:30 p.m. weekdays.

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You can read more about requirements and how to apply on the Department of Treasury’s website, but here’s a summary.

 

Who’s eligible for a Senior Freeze benefit?

To qualify, you must:

  • Be 65 or older or receiving Social Security disability benefits
  • Have lived in New Jersey continuously for at least the last 10 years, as either a homeowner or a renter
  • Have owned and lived in your home (or leased a site in a mobile home park with a mobile home that you own) for at least three years
  • Have paid the full amount of property taxes that were due on your home for the base year and each succeeding year up to the year for which you’re claiming reimbursement
  • Meet the income limits for the same time period

 

Who’s eligible for the Homestead benefit?

If you are 65 or older and/or disabled as of Dec. 31, 2010, you must:

  • Have owned and occupied a home that was your principal residence as of Oct. 1, 2010
  • Have a gross income for 2010 of $150,000 or less before exemptions and deductions; this applies to individuals and couples
  • Own a home subject to local property taxes
  • Have paid your 2010 property taxes

If you younger than 65 and not disabled as of Dec. 31, 2010, you must:

  • Have an income for 2010 of $75,000 or less before exemptions and deductions, not including income not subject to tax, such as Social Security or unemployment compensation; this applies to individuals and couples
  • Have owned and occupied a home that was your principal residence as of Oct. 1, 2010
  • Own a home subject to local property taxes
  • Have paid your 2010 property taxes

 

How much is the benefit?

The Homestead benefit amount depends on which category of applicant you fall under, and your income.

For those 65 or older and/or disabled:

  • If you make $100,000 or less per year, the amount is your 2006 property taxes multiplied by 10 percent
  • If you make between $100,000 and $150,000, the amount is your 2006 property taxes multiplied by 10 percent.

For those younger than 65 and not disabled:

  • If you make less than $50,000, the amount is your 2006 property taxes multiplied by 10 percent
  • If you make between $50,000 and $75,000, the amount is your 2006 property taxes multiplied by 6.67 percent.


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