Do I need to enter the Homestead Benefit anywhere on the NJ State or Federal Return?

Forum|Forum|6 years ago
March 22, 2020
1 reply
16 views

From what I can see, it looks like you get it through a direct reduction to your quarterly property tax bill, is that correct? Thank you!

rjs

Level 15

In most cases you get the NJ Homestead Benefit as a credit on your property tax bill. It's usually credited twice a year, for the May and November payments, not quarterly.

You do not enter the Homestead Benefit in your federal tax return. But if you are itemizing deductions you can only claim the amount of property tax that you actually paid.

In your New Jersey tax return, when you enter the amount of property tax that you paid, if you received the Homestead Benefit as a credit on your property tax bill, enter the amount you actually paid plus the Homestead Benefit. But if you received the Homestead Benefit as a check, enter only the amount of property tax that you actually paid.

fanfare

Level 15

@rjs "enter the amount you actually paid plus the Homestead Benefit"

Doing this would be taking a deduction for taxes you did not pay. That's a no-no.

rjs

Level 15

@fanfare wrote:

@rjs "enter the amount you actually paid plus the Homestead Benefit"

Doing this would be taking a deduction for taxes you did not pay. That's a no-no.

@fanfare It is explicitly allowed on the New Jersey tax return. The instructions tell you to do it that way. The following is from the instructions for Form NJ-1040, page 24.