What is the homestead benefit? (credit, house, income)

[AAVC]

Being new to home ownership in NJ, I have no idea what this is... The searches I've done are getting into technical details on how to go about it, I have yet to find an explanation of the concept.

Thanks!

[jasinjersey]

I have the exact same question! I have not been able to find a brief, simple explanation as to what it is anywhere. We've owned our place for 2 years now and this is the first we've heard of it. I went ahead and applied for it, but I have no idea what to expect. PLEASE, someone help us out!

[tom_567]

I just applied for mine tonight, and just read all about it (my first year filing for it too). Info about how to apply is available on the NJ Department of Taxation's website. I'm not sure if we can post a link here, so just do a quick search to find the webpage (you can apply online too). This used to be a program where you would receive a check from the state to help "offset" property taxes. Instead of using checks, Christie retooled the program as a "credit" program which will directly adjust some or all of your 2012 quarterly property tax assessment(s). However, you most likely pay your property taxes via an escrow account at the bank, so the bank will likely not know of the lowered post-benefit assessment and you will likely only see the true benefit at the end of the 2011 year, once you receive your escrow statement and Calendar 2012 escrow payment amount from the bank.

Also, the specifics amount of the "rebates" and which quarterly assessment or assessments they will impact are line items in the upcoming state budget for FY 2012, which needs to be signed into law by 6/30/2011 to avert a state shutdown. This is why there are no credit amounts listed on the application form. The formula for the 2009 benefit (last year's) was something like 13% of 2006 assessed taxes divided by 4 for those making over 50k. If I were eligible last year, I would have received a whole $183 (the 2006 property taxes on my house were $5651), so don't get too excited!

Hope this helps you out!

[Goldendoodle1969]

The program was designed for lower income households and seniors.

There are pretty strict income limits in place if you are under age 65, like combined HHI of less than $75,000.