New Jersey Residents: Key Updates on Tax Refunds and Relief Programs

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As tax season continues, New Jersey residents are focusing on their state income tax refunds and the broader tax relief initiatives available in 2025. Here’s what you need to know:

Tax Refund Updates

The New Jersey Division of Taxation began issuing 2024 state income tax refunds on March 1, 2025.

For those who filed electronically, refunds typically take at least four weeks to process, while paper returns require a minimum of 12 weeks.

Refunds involving the New Jersey Earned Income Tax Credit (NJEITC) may face additional delays due to mandatory reviews.

Taxpayers can check their refund status through the state’s automated phone system or online using their Social Security number and the estimated refund amount.

Direct deposit remains the fastest method for receiving refunds, but issues such as incorrect account information can lead to delays, with paper checks issued as a backup.

Expanded Free Filing Options

Starting in the 2025 filing season, New Jersey residents will have access to the IRS Direct File program, a free online tax filing tool introduced under President Biden’s Inflation Reduction Act. Over one million New Jerseyans are expected to benefit from this system, which aims to save taxpayers time and money by eliminating filing fees.

Property Tax Relief Programs

New Jersey continues to address its high property tax burden through initiatives like the ANCHOR program (Affordable New Jersey Communities for Homeowners and Renters).

This program offers rebates of up to $1,750 for homeowners earning up to $250,000 annually and credits of $700 for renters with incomes up to $150,000.

Additionally, senior citizens can take advantage of programs like the Senior Freeze, which reimburses eligible residents for property tax increases.

Tax Breaks for Older Residents

New Jersey provides several tax exemptions and credits for older adults. These include a $1,000 income tax exemption for residents aged 65 and older, expanded eligibility for the Earned Income Tax Credit, and exemptions on retirement income for those earning less than $150,000 annually.

With these measures in place, state officials aim to provide meaningful financial relief while improving access to tax benefits. Residents are encouraged to file early and take advantage of available resources to maximize their refunds and credits.

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