No ANCHOR rebate? Reasons you may not get your money

💲 If you do not receive an ANCHOR property tax rebate, it might be for one of these reasons

💲The State can seize the rebate money for a variety of unpaid debts

💲Disputing the seizure can be done, but it may not be easy

New Jersey will begin sending out ANCHOR property tax rebates in November, 2023.

Generally, if you received a rebate check in March, you don’t need to do anything. The state will automatically file a new application and send you the benefit.

However, there are a number of factors that could prevent you from getting your money even if you qualify for a rebate.

The state has the power to seize that benefit for the payments of certain debts and back taxes.

This Asked and Answered column looks at some of the situations that could lead to you not receiving your benefit, and what you can do to resolve the issue and arrange to get your money.

New Jersey can just take my money?

Yes.

It’s technically called a Set-Off or Offset program and there are several in place in the state of New Jersey.

Under the Set-off program, New Jersey will divert taxpayer refunds and government payments to pay federal or state debts.

What will trigger a fund diversion?

The most common Set-Off is for unpaid taxes, traffic fines, child support or other government programs, according to the New Jersey Department of the Treasury.

If you know you owe back taxes, alimony, or child support it would be safe to assume the state could take your rebate money.

The state can also seize a portion or all of your rebate check if you owe money, penalties or fees to agencies like the Motor Vehicle Commission or the Department of Labor and Workforce Development.

What types of Set-Offs and Offset programs are in New Jersey?

The most common is called Set-Off Individual Liability or SOIL.

According to the New Jersey Treasury, SOIL withholds New Jersey Income Tax refunds and property tax relief payments from taxpayers who owe debts for New Jersey taxes as well as municipal, State, and federal agencies.

There is also what is known as the Federal Offset of Individual Liability or FOIL.

Under FOIL, New Jersey will withhold federal income tax refunds to reduce unpaid New Jersey Income Tax debts.

Will I be notified if the state is taking my money?

In most cases, yes.

If an agency claims you have a debt, and a tax refund or benefit payment is available, you should get a notice in the mail from the Department of Treasury.

The notice will tell you:

🔺 The amount of tax refund or benefit payment available to pay that debt.
🔺 The name of the agency or agencies that requested payment and each agency’s contact information.

Can I dispute the debt?

Yes.

If you receive a notice that you have an unpaid debt and your ANCHOR rebate is being seized, you have 35 days to file a dispute or provide proof the debt has been paid.

However, you must contact the agency holding the debt, NOT the Department of Treasury.

If I have paid the debt, will I get my money?

Maybe.

Even if you have proof that the debt has been paid or is not a valid debt, Treasury will not release you rebate money until the agency that claimed you had a debt notifies them that the debt has been settled.

Treasury will not accept proof from individuals disputing the debt.

Once that agency notifies Treasury the debt has been satisfied, and no other debt exist, the money will be released to you.

Treasury says it can take up to 60 days to issue the payment.

What if I owe money in another state?

New Jersey has Reciprocal Set-Off agreements with California, Connecticut, Maryland, and New York.

According to the Department of Treasury, the state will send New Jersey Income Tax refunds to offset taxes owed in those states.

If you receive a notice that you owe another state and you believe it is an error you have 90 days to respond in writing to the address provided in the notice in order to appeal the claim.

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