If you are a resident of this state, some extra cash rebates may soon be coming your way. While the federal tax season is long over and rebates and tax credits have been distributed to taxpayers, individual state rebates and credits may still be coming your way, depending on where you live. This can be thanks to tax surpluses your state has come into, established rebate programs and initiatives, and also down to different state income tax timelines to the federal income tax timeline.
Who is liable for state tax?
When it comes to paying your taxes, federal income tax usually takes center stage. This is because, regardless of where you are in the country, you have to file a tax return with the Internal Revenue Service (IRS) if you are an income-earning individual. While this does not necessarily mean that you will be liable to pay tax on your income, as you have to earn above a certain threshold to be liable to do so, you do have to file (at the very least) in order to receive any tax rebates or credits, as well as if you meet the following minimum criteria:
- Your gross income is over $14,600 a single taxpayer under the age of 65
- You have over $400 in net earnings from self-employment
In addition to federal income tax, certain states also require you to pay state income tax. The only states that do not require this are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. However, these states often have high taxes on sales tax, property tax, or other revenue streams in order to make up for the lack of taxation on earned income.
Cash payments in rebates from this state
If you are a resident of New Jersey, while you are still liable to pay your state income tax, you may be receiving a new tax rebate payment coming your way if you are an eligible homeowner or renter. The New Jersey Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program is intended to bring property tax relief to homeowners and renters in the state.
The New Jersey Division of Taxation stipulates that the deadline to apply to take part in the program is October 31, with the first payments for eligible individuals who have already applied already set to land September 15. In order to be eligible for the rebates, you must meet the following critiera:
- You have been a New Jersey resident since October of last year
- Your 2024 gross income was not more than $250,000 as a homeowner and $150,000 as a renter
- You have owned or rented your main residence since October 1, 2024, and you have paid property taxes on the home, or your rental was subject to property taxes
- Renters need to ensure that their name is on the lease and that they have been paying rent
Who is eligible to receive $1,750?
If you meet the stipulated qualifying critiera, you can expect to receive the following cash payment rebates on your property taxes:
- If you have a 2024 gross income of $150,000 or less, you will receive $1,500
- If you have a 2024 gross income between $150,000 to $250,000, you will receive $1,000
However, you can earn up to $1,750 in tax relief from the program if you are 65 years old or older and have a gross income less than $150,000. If you are a senior citizen, you qualify for an additional payment of $250, meaning that your tax rebate is increased to $1,750. With the country currently facing a homeowning crisis, particularly for young people, relief from property taxes is a much-welcomed initiative, especially if you have children and need the extra cash for imminent back-to-school expenses.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
