NJ-2 Property Tax Relief Programs v1.0 VO.ppt
New Jersey
Property Tax Relief Programs
Homestead Benefit
Tenant Rebate
Senior Freeze (PTR)
Other
11/30/2010
NJ Training TY2010 v1.0
LEVEL 2 TOPIC
1
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
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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)
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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)
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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
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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

11/30/2010
Except in situations where actual check
received – see previous slide
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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

11/30/2010
May (or may not) be funded in future year budgets –
stay tuned…
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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




11/30/2010
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
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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)

11/30/2010
Impact – TP with Total Income >$70,000 but < $80,000 in 2009
currently not eligible for PTR
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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.
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