Final 11-15-2008 NJ Training TY 2008 1

New Jersey Property Tax Relief Programs

Homestead RebateSenior Freeze (PTR)

Other

Module NJ 1.36.3

Final 11-15-2008 NJ Training TY 2008 2

NJ Property Tax Relief Programs

Property Tax Deduction / Credit (Covered as part of NJ Return preparation)

Homestead Rebate Program aka NJ Saver Rebate / FAIR Rebate

Property Tax Reimbursement (PTR) Aka Senior Freeze

Other Deduction for Senior Citizens / Disabled Deduction for Veterans Exemption for Disabled Veterans

Final 11-15-2008 NJ Training TY 2008 3

NJ Property Tax Deduction or CreditHomeowners 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

New in 2009 – Income limitations may reduce deduction / credit (if under 65)

HOMESTEAD REBATE PROGRAM Rebate for Homeowners or Tenants who

occupied their principal residence on Oct 1st Paid R/E tax or Rent (18% of Rent = R/E Tax) Tenants - Complete Form TR-1040, Homestead

Rebate Application, included with NJ 1040, Income Tax Return. Must re-input rent.

Homeowners - Homestead Rebate Application mailed to homeowners mid year for completion and submission by taxpayer

04/19/23 NJ Training TY 2008 4

Final 11-15-2008 NJ Training TY 2008 5

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 TPMust 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

Final 11-15-2008 NJ Training TY 2008 6

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.