Affordable New Jersey Communities for Homeowners and Renters (ANCHOR), Homestead Benefit, and Senior Freeze (Property Tax Reimbursement) payments are not taxable for New Jersey Income Tax purposes and should not be reported on the New Jersey Income Tax return.
Information on the federal tax treatment of these payments, called "recoveries" by the IRS, can be found in the federal Form 1040 instructions and IRS Publication 525, Taxable and Nontaxable Income, which are available on the IRS website.