All income, from whatever source derived, is considered in determining eligibility for the purposes of the property tax reimbursement. Jointly owned income sources will be allocated according to degree of ownership.
All income, taxable and nontaxable, is to be included. A loss in one category of income
cannot be applied against income or gains in another. Examples of possible sources of income (gross amounts unless otherwise noted) are as follows:
- Social Security Benefits (including Medicare Part B premiums) paid to or on behalf of the applicant
- Salaries
- Wages
- Bonuses
- Commissions
- Fees
- Dividends
- Interest (taxable and nontaxable)
- Capital gains
- Net rental income
- Royalties
- Disability benefits, whether public or private (including veterans' and black lung benefits)
- Inheritances
- Support payments
- Unemployment
benefits
- Pension and retirement benefits (including IRA and annuity income) Note: The method of reporting pension and retirement benefits (including IRA and annuity income) for property tax reimbursement purposes has changed as a result of a recent court decision. See the instructions for completing the income section of the 2012 reimbursement application.
- Net profits from business
- Net distributive share of partnership income
- Net pro rata share of s corporation income
- Fair market value of prizes and awards
- Gambling and lottery winnings (including New Jersey Lottery)
- Bequests and death benefits
- All other income
Sources of income which are excluded in considering eligibility for the property tax
reimbursement are as follows:
- Benefit amounts received under the New Jersey State Lifeline Credit Program/Tenants
Lifeline Assistance Program
- Benefits received as New Jersey homestead, FAIR, or SAVER rebates
- Benefits received as property tax reimbursements
- Proceeds from spouse's/civil union partner’s life insurance
- Capital gains on the sale of a principal residence of up to $250,000
if single, and up to $500,000 if married/CU couple. Capital gains in excess of the allowable exclusion must be included in income. (Capital gains and the exclusion of
all or part of the gain on the sale of a principal residence are computed
in the same manner for both Federal and State income tax purposes.)
- Stipends from the Volunteers in Service to America (VISTA), Foster Grandparents
and Workforce 55+ programs; and programs under Title V of the Older Americans Act of 1965
- Proceeds received by the beneficiary of a Special Needs Trust
- Proceeds received from viatical settlements
- Agent
Orange payments
- Reparation
payments to Japanese Americans by the Federal Government pursuant to Sections
105 and 106 of the Civil Liberties Act of 1988, PL 100-383 (50 U.S.C. App.
1989b-4 and 1989b-5)
- Amounts
paid as reparations or restitution to Nazi Holocaust victims pursuant to P.L.
1998, c.113
- Rewards involving health care fraud or abuse which apply to N.J.A.C. 10:49-13.4
- Rollovers from one financial instrument (pension, annuity, IRA, insurance contract or other retirement benefit) to another financial instrument.
- Tax-free exchanges of a policy or contract handled between two insurance companies
- Insurance policyholder's original contributions if demutualization of the policy occurs
- Income tax refunds (New Jersey, Federal, and other jurisdictions).
For more information, see the instructions for completing the income section of the reimbursement application in the instruction booklet,
Form PTR-1.
