Can you, as a senior, freeze your taxes?
Freeze Your Taxes
It’s a fact that twice as many people move out of New Jersey than move in. And a big part of the reason is the high real estate taxes. However, for some of us, there is a little relief from the taxes. You see, New Jersey has the “Senior Freeze” program. This allows residents, 65 and older and individuals with disabilities, reimbursement on their property taxes. However, there are limitations.
Limitations
In addition to being 65, you’ll need to have been a New Jersey resident for the past 10 years. And, you’ll need to be in the same home for 3 years. In addition, your property taxes must be current, and there is an income restriction. The base income for 2018 is $89,013, and that’s gross income. If you’re self employed, any business expenses can be used to reduce your taxable income. However, in Senior Freeze, the gross receipts count as income. In addition, the state reserves the ability to reduce this threshold if the budget requires it.
Base Level
The first time you submit an application, and it’s approved, you’ll be assigned a base amount for your taxes. You’ll need to file every year after that, and, as long as you still qualify, that’s what you’ll be responsible for. You’ll (hopefully) receive a check for the amount you’ve paid over the base level.
How To Apply
You’ll need to download the forms, visit https://www.state.nj.us/treasury/taxation/ptr/, or call 1-800-882-6597
Bottom Line
Please remember, I’m a Realtor. I’m not a CPA or accountant, nor am I a financial adviser. In fact, I’m not qualified to give any financial advice. If you’re interested in pursuing the Senior Tax Freeze, either do your own due diligence or seek advice from a professional. However, I can give you advice on either buying or selling a home. Please call me for that.
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