NJ income tax question - residence component. Also, ANCHOR (renters, credit)

[FromGA]

I relocated to NJ during mid 2022. Started off renting, still renting. When I was using tax software to file NJ state income tax during tax season 2023, there were some questions that seemed to be geared towards providing some relief based on residence (owning, renting, etc). It was not very clear to me if I was eligible for the relief, so I answered No and skipped that part.

Now that you guys are going thru ANCHOR, I was wondering what that question might have been, and whether I should have gone through it fully, and obtained tax relief. I can re-file my NJ state income, if it would be something significant. Can someone clarify if NJ state income tax filing contains relief for renters (and how the amounts are calculated), and whether this is related to the ANCHOR program?

Also, is the ANCHIOR payment currently for 2020? And will it be two years before they get to 2022? Typically, does one need to apply for it, or do they know to feed off of the state income tax filings?

Thank you!

[camaro69]

As far as Anchor in order to apply this year you needed to be a resident of NJ since Dec 31, 2011.

Therefore, you don't quality, but I did hear something that Murphy was going to lift the 10 year requirement in 2024.

I also heard that the max income is going from 99K to 150k in 2024.

[SC300Es]

You should get a credit, based on your income, for rent or property taxes paid. This only applies to the NJ income tax return. I don't know much about ANCHOR.

[FromGA]

Thank you. I see there are two separate issues. One is ANCHOR (seems to be for longer term residents, as of now), and the other is the deduction/credit on NJ income taxes.

I will not worry about the 2022 filing (will not re-file), as I was only here for a few months in 2022. Thinking ahead for 2023:

SC300Es, or anyone who knows: I will be taking the standard deduction on my federal tax return. If there is a different NJ standard deduction, I will take the NJ standard deduction as well. Does the issue of rent-based deduction/credit disappear in this case, or does it still apply? Thank you.

[SC300Es]

I think it is a separate line item not related to standard/itemized deduction.

[bluewin888]

Eligibility
Who is eligible for the ANCHOR program?

New Jersey homeowners who meet the requirements based on 2020 residency, income, and age, are eligible for an ANCHOR homeowner benefit if:

You were a New Jersey resident; and
You owned and occupied a home in New Jersey that was your principal residence (main home) on October 1, 2020; and
2020 property taxes were paid on that home; and
Your 2020 New Jersey gross income was $250,000 or less.
Do I have to be a current New Jersey resident to apply?

No. You must have owned and occupied a home in New Jersey as your principal residence on October 1, 2020. However, applicants who moved after October 1, 2020, are eligible if they met the other 2020 program qualifications.

[FromGA]

Thank you camaro69, SC300Es, and bluewin888!