Homestead Benefit Information for Homeowners Under Age 65 and NOT Disabled on December 31, 2010

Eligibility
If you were under age 65 and NOT disabled on December 31, 2010, you are eligible for a 2010 New Jersey homestead benefit if your domicile (or permanent legal residence) is in New Jersey and you meet the following conditions:

• Have New Jersey gross income for 2010 of $75,000 or less before exemptions and deductions. This does not include income that is not subject to New Jersey gross income tax such as Social Security, Railroad Retirement benefits, or unemployment compensation. View list of other nontaxable income. The $75,000 income limit applies to a single individual, a married/civil union couple living in the same residence, and a married/civil union partner maintaining a residence separate from their spouse/civil union partner.
• Owned and occupied a home in New Jersey that was your principal residence on October 1, 2010;
• The home must have been subject to local property taxes, and 2010 property taxes must have been paid. However, the State Budget mandates that the 2010 benefit will be calculated using 2006 property taxes. See Benefit Amounts by Income Limits for Homeowners Under Age 65 and NOT Disabled.

If you were not a homeowner on October 1, 2010, you are not eligible for a 2010 homestead benefit, even if you owned a home for part of the year.

New Jersey residents are not eligible for a homestead benefit if no property taxes are paid on their dwellings. This includes:

• Homeowners completely exempt from paying property taxes on their principal residence. This can include certain disabled veterans and their unmarried surviving spouses/surviving civil union partners/surviving domestic partners who may claim a 100% exemption from local property taxes under certain conditions.
• Homeowners who made P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments to their municipality. These payments are not considered property taxes for purposes of the homestead benefit.

How to File
Most homeowners will file their applications either online or by phone (1-877-658-2972). Homeowners who need to file a paper application can request one through either of the automated filing systems after entering their ID and PIN. The Internet and automated phone filing systems are available 24 hours a day, 7 days a week. The filing deadline was November 7, 2011.

Benefit Amount
Eligible homeowners will receive their homestead benefit for 2010 as a credit applied to their February 2012 property tax bills. However, any homestead benefit for which you are eligible will be issued in the form of a check (or direct deposit) if (1) your principal residence was a unit in a co-op or continuing care retirement community or (2) you stated in your application that you no longer own the property that was your principal residence on October 1, 2010.

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 2010. The State Budget mandates that the 2010 benefit will be calculated using 2006 property taxes. Under the terms of the Budget, the 2010 benefit amount cannot exceed the homestead rebate amount paid for 2006 unless there has been a change in an applicant’s filing characteristics. “Filing characteristics” means a reduction in income range, a change in age/disability status or filing status, or an increase in percentage of ownership.

Under New Jersey law, if an applicant receives a benefit that is larger than the amount for which they are eligible, the applicant will be required to repay any excess received. The amount owed can be deducted from the applicant’s homestead benefit or income tax refund or credit before the payment is issued.

• Benefit Amounts by Income Limits for Homeowners Under Age 65 and not Disabled
• Homestead Benefit Frequently Asked Questions

Send an e-mail about your Homestead Benefit

Information for Homeowners Age 65 or Older and/or Disabled