Division of TaxationThe New Jersey Division of Taxation is issuing this clarification regarding eligibility criteria and income reporting for the 2024 Senior Freeze (Property Tax Reimbursement) program, consistent with P.L. 2024, c.88; the Stay NJ law.
Taxpayers who turn 65 or qualify for federal Social Security disability benefits in 2024 will be eligible to apply for the Senior Freeze for the 2024 tax year. In these cases, 2023 will generally be considered the base year, and 2024 will be treated as the claim year, provided all other eligibility requirements are met.
To meet the three-year residency requirement for the 2024 claim year, taxpayers must have continuously owned and occupied their principal New Jersey residence from December 31, 2021, through December 31, 2024. The Division confirms that 2024 may now be counted as the third year in the three-year period.
The Division provides the following clarification on retirement income reported for the PAS-1 application, specifically regarding Worksheets A, B, C, and D.
On line c of the worksheets, taxpayers should report the amount from line 20b of the NJ-1040, but only to the extent it reflects interest or other earnings on pensions, annuities, or IRAs. Taxpayers should exclude any amounts representing the return of previously taxed contributions (basis) to an annuity or to a retirement plan that is not a 401(k). In addition, amounts reported on line 20a of the NJ-1040 should not be included on line c.
Traditional IRA or other qualified plan rollovers that are not taxable to New Jersey will not be included as income on the PAS-1 application. Roth IRA rollovers are specifically included by the Stay NJ law in the income calculation for these programs so they must be included on line c of the worksheet, even if they are not taxable for New Jersey income tax purposes. Taxpayers should not include their previously taxed contributions (basis) as income on the PAS-1 application.
Official Site of The State of New Jersey