The new PAS-1 application has simplified the process of applying for New Jersey’s property tax relief programs (ANCHOR, the Senior Freeze, and Stay NJ), but it has also created confusion for many homeowners. In a recent NJ Money Help article, Leo Chubinishvili, CFP®, Wealth Advisor at Access Wealth, explains how Roth IRA activity should be reported on the application and what to do if you think you’ve made a mistake.
Leo addresses a common question about whether Roth IRA conversions should be reported as untaxed income on the PAS-1 application. He explains that while qualified Roth IRA distributions are reported separately on the form, Roth conversions are treated differently because they are already included as taxable income on the New Jersey income tax return. As a result, Roth conversion amounts generally should not be reported a second time on the PAS-1 application.
Leo also advises that if you believe you’ve made an error on your application, it’s best not to wait. Instead, contact the New Jersey Division of Taxation or visit the state’s Property Tax Relief website to ask how to submit a corrected application before the filing deadline.
What This Means for You
The PAS-1 combines several property tax relief programs into a single application, but that convenience also means it’s important to understand how different types of income are reported. If you’re unsure how retirement account transactions affect your eligibility or you’ve already submitted your application and have concerns, seeking guidance sooner rather than later can help prevent unnecessary complications.
Read the full NJ Money Help article to learn more about reporting Roth IRA activity on the PAS-1 application and what steps to take if you discover a mistake.
I Made a Mistake on the PAS-1 Application. What’s Next?
Learn more about Leo and how he helps his clients plan for retirement and manage their financial lives through comprehensive financial planning and investment management.
