This $250.00 deduction is made available to Senior Citizens 65 or over, or their Surviving Spouse 55 or over. Seniors must be citizens of New Jersey and owners of the property they are applying the deduction for as of October 1st of the previous year. The property must also be their primary residence. The Surviving spouse can apply for the deduction of they are 55 or over at the time of the senior's death.
This deduction is also available to those persons deemed totally disabled. The requirements are the same as for Senior Citizens except that there is no age requirement. A letter from the Social Security Administration indicating Permanent and Total Disability is required as proof.
There is an income requirement that must be met in order to be eligible for this deduction. The applicant's income, including that of their spouse, cannot exceed $10,000.
Income means all income received from whatever source derived including, but not limited to salaries, wages, bonuses, commissions, tips and other compensations, before payroll deductions, all dividends, interest, realized capital gains, royalties, income from rents, business income, and in their entirety, pension, annuity and retirement benefits. Realized capital gain from the sale or exchange of real property owned and used by the claimant as his principal residence.
Income of up to $26,280 can be excluded under one of the three circumstances:
- Social Security Benefits or Federal Government Retirement Disability Pension including Federal Railroad
- Retirement Benefits or State, County, Municipal Government and their political subdivisions and agencies
- Retirement/Disability Pension
Proof of age, ownership and residency are required at the time of application. An income worksheet will be calculated at the time of application, proof of income is also required. The most helpful proof of income would be the most recent income tax form filed by the applicant.
On or before March 1st of each year following the granting of the deduction, the Tax Collector will require the completion of the Annual Post-Tax Year Income Statement. This statement is used to confirm that the annual income for the tax year did not exceed the $10,000 limit and that anticipated annual income for the current year will not exceed that limit and that all other eligibility prerequisites continue to be met. Taxpayers should be aware that if this form is not completed and returned in a timely fashion, the Tax Collector would disallow the deduction and they will be billed for the deduction amount.