Are NJ Anchor benefits deducted from Real Estate taxes paid on the 2023 tax return?

[RayeL]

I find conflicting information regarding how or if NJ Anchor benefits received in 2023 are reported for the 2023 tax year. Has anyone found the definitive answer?

For example, if $10,000 of real estate taxes were paid to NJ in 2023, are the NJ Anchor benefits received subtracted from the $10K and the result reported on the return?

$10,000 NJ real estate tax paid - $1,500 Anchor Benefit received = Real Estate Taxes reported?

Thanks everyone!

[RayeL · Accepted solution]

Answering my own question...

Short answer: NO. Reporting NJ Anchor Benefits received in 2023 is not required on 2023 tax returns.

Note: do not bother trying to find the answer to this question on the State of NJ's Anchor Benefit website (NJ Division of Taxation - ANCHOR Program). It is useless in this instance.

Long answer: I asked GEMINI AI this question "Do NJ Anchor Benefits received in 2023 reduce the property taxes paid in 2023 reported on your tax returns?"

No, NJ Anchor Benefits received in 2023 do not reduce the property taxes you paid in 2023 reported on your tax returns.

The ANCHOR benefit acts as a rebate or credit, but it applies to your tax liability, not the amount of property taxes you report. It reduces the amount of tax you owe, but it doesn't change the total property taxes you paid.

Here's a breakdown:

Property taxes paid in 2023 are reported on your 2023 tax return (filed in 2024 typically).
ANCHOR benefits are a credit applied to your tax liability, potentially reducing the amount of tax owed.
They are separate items on your tax return.

I also found another reference that indicates the answer to the above question is no:

https://www.njspotlightnews.org/2024/01/nj-residents-received-record-amount-anchor-property-tax-reli...

"In all, more than 1.8 million residents, including more than 1.2 million homeowners and 579,000 renters, received the second round of Anchor benefits, which offset property taxes paid in 2020, Treasury officials said."

Hope this help someone else out there 🙂