November 10, 2010

New Jersey Homestead Benefits Extended Deadline

Related Service Tax & Business

New Jersey Homestead Benefits Extended Deadline Tax & Business

On October 28, 2010, the New Jersey Division of Taxation extended the deadline for filing the 2009 Homestead Benefit application from November 1, 2010 to January 3, 2011. Applications for the Benefit were mailed to homeowners in September but the Division determined many people needed additional time in order to complete the application.

Those who qualify for the benefit must have been New Jersey residents owning a home that was their principal residence on October 1, 2009 and paid property taxes on that home. Gross Income must be $75,000 or less, or if they are a senior or disabled homeowner, their 2009 New Jersey gross income must be $150,000 or less. The amount of the benefit is based on an applicant’s income, filing status, property taxes, and whether the applicant was age 65 or older or eligible to claim an exemption as blind or disabled for tax year 2009. The State Budget mandates that the 2009 benefit will be calculated using 2006 property taxes. Under the terms of the Budget, the 2009 benefit amount, when annualized, cannot exceed the homestead rebate amount paid for 2006 unless there has been a change in an applicant’s filing characteristics.

Those who qualify will no longer receive a rebate but rather a credit on their property tax bill for the second quarter of 2011. The filing process remains the same.

Please note that although taxpayers may have a combined total income greater than the thresholds mentioned above, the income levels should be reviewed for those filing separate tax returns and claiming the principal residence.

Further information on the Homestead Benefit Program is available on the Division’s web site at: www.state.nj.us