The NJ Senior Freeze can save you money

Senior Freeze (Property Tax Reimbursement) Program)

This New Jersey tax reduction program works but you have to apply

New Jersey residents may not be aware of the Property Tax Reimbursement Program, also known as the “Senior Freeze” program: a state program that reimburses eligible senior citizens for property tax increases on their primary residence. Once a household applies for the “Senior Freeze,” their future property taxes are “frozen” at their current level for all future years in which they meet the requirements.

Normally, this “freeze” works by issuing annual reimbursements to program participants, paying back the difference between their “frozen” property tax level and the increased amount they actually paid. Unfortunately, due to the coronavirus and the pending state budget, there may be some changes to the program’s funding this year, reducing or eliminating the reimbursement amount for 2020 only.

In the meantime, residents can still apply to “freeze” their property taxes at their current level, rather than waiting another year and allowing your taxes to increase in 2021. Applicants might not receive a reimbursement for this year’s Senior Freeze, but accepted applicants will pay less in taxes next year, and for all subsequent years that they qualify.

Applicants must meet the following eligibility requirements to qualify for the Senior Freeze:

•  You or your spouse/civil union partner were 65 or older on December 31, 2018 or were receiving federal Social Security disability benefit payments on or before December 31, 2018
• You have lived in New Jersey continuously since December 31, 2008, or earlier, as either a homeowner or a renter.

Homeowners Only:     

•       You owned and lived in your home since December 31, 2015, or earlier (and you still owned and lived in that home on December 31, 2019.
•       The 2018 property taxes due on your home must have been paid by June 1, 2019, and the 2019 property taxes must be paid by June 1, 2020.

 Mobile Home Owners Only:

•  You leased a site in a mobile home park where you placed a manufactured or mobile home that you owned since December 31, 2015, or earlier (and still lived in that home/leased the site on December 31, 2019).
• Your site fees must have been paid by December 31 of each year respectively.

 Additionally, applicants must meet the following income limits:

•  Your total annual income (combined if you were married or in a civil union and lived in the same home) was:
• 2018 – $89,013 or less; and
• 2019 – $91,505 or less

 You are not eligible for a reimbursement on:

• A vacation home or second home;
• Property that you rent to someone else;
• Property that consists of more than four units; or
• Property with four units or less that contains more than one commercial unit.
• Are completely exempt from paying property taxes on your home; or
• Made P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments to your municipality.

Life Estate (Life Tenancy). You are considered the owner of the property if you have life estate rights or hold a lease for 99 years or more. You must include with your application a copy of an official document (e.g., deed, lease) establishing your right to occupy the property.

For more information and to apply on line, visit New Jersey’s Senior Freeze website at https://www.state.nj.us/treasury/taxation/ptr/index.shtml

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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New Jersey Senior Freeze program helps with your tax bill.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

From New Jersey Money Help-

A question about NJ's Senior Freeze Program

Q. Has the property tax freeze been increased to incomes of $90,000?— Senior

A. You’re talking about the Senior Freeze program.

According to the website of the New Jersey Department of Treasury, Division of Taxation: “The Senior Freeze Program reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence. To qualify, you must meet ALL the eligibility requirements for each year from the base year (the year in which you became eligible for the senior freeze) through the application year (the current application year is 2018).”

These eligibility requirements are based on age/disability, residency, home ownership, property taxes payment history and income limits.

In this year’s budget, funding for the Senior Freeze program is increasing by $18 million in fiscal year 2020 for a total of $219.7 million, Taxation said.

The increase was because the budget removed language that capped income eligibility at $70,000, raising it back to $89,013, which will allow more people to apply, Taxation said.

Keep in mind that if your status is as a married/civil union couple and you lived in the same household, you must combine your incomes for the year and be below the income limits, said Deva Panambur, a certified financial planner with Sarsi, LLC in West New York. and adjunct professor of personal finance at Montclair State University.

The Division of Taxation has an online questionnaire to help you check your eligibility.

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published on July 23, 2019.

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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New Jersey Senior Freeze Program - do I have to fill out the form every year?

Vested Land Services LLC is ready to help you make that home purchase a reality instead of a title headache.  Here's some background information about the New Jersey Senior Freeze Program that helps senior citizens with their real estate taxes from NJMoneyHelp.com.  Information about the current program can be found at the end of the article.

Q. Do I have to fill out a form every year for the Senior Freeze?
— Hater of paperwork

A. Let’s go over the Senior Freeze.

The Senior Freeze property tax reimbursement program reimburses eligible senior citizensand disabled persons for property tax or mobile home park site fee increases on their principal residence, said Abby Rosen, a certified financial planner with RegentAtlantic in Morristown.

To qualify, you must meet all the eligibility requirements for each year from the base yearthrough the application year, currently 2016.

You qualify if you, or your spouse or civil union partner, were:

1) 65 or older; or actually receiving Federal Social Security disability benefit payments (not benefit payments received on behalf of someone else).
2) You lived in New Jersey continuously for at least the last 10 years, as either a homeowner or a renter.
3) Homeowners: You owned and lived in your current home for at least the last three years.Mobile Home Owners: You leased a site in a mobile home park where you placed a manufactured or mobile home that you owned for at least the last three years.
4) Homeowners: You paid the full amount of the property taxes due on your home. Mobile Home Owners: You paid the full amount of mobile home park site fees due.
5) Your income did not exceed $87,007 for 2015 and $70,000 for 2016, as long as they meet all other requirements. Applicants whose income was over $70,000 but was $87,007 or less can establish their eligibility for future reimbursements by filing an application by the due date.

So yes, you must fill in a form every year to participate in the Senior Freeze, Rosen said.

“A form PTR-2 should be mailed to you annually if you filed an application the prior year and met all eligibility requirements,” she said. “You must file a PTR-1 if it’s your first time applying or you were ineligible the prior year.”

Rosen said you must file your application (Form PTR-1 or PTR-2) for 2016 on or before the extended due date of October 18, 2017. The original due date was June 1, 2017.

Information about the current program may be found on the official New Jersey website.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

Follow us on Twitter @vestedland and FaceBook 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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