TRENTON — Thousands of New Jersey seniors may be trying to cheat the government by claiming they are eligible for the "senior freeze" program, a reimbursement meant to protect the elderly and disabled from rising property taxes, according to a state audit. The audit, which compared 2008 federal tax returns to senior freeze applications, found that in about 7,000 cases,...
TRENTON — Thousands of New Jersey seniors may be trying to cheat the government by claiming they are eligible for the "senior freeze" program, a reimbursement meant to protect the elderly and disabled from rising property taxes, according to a state audit.
The audit, which compared 2008 federal tax returns to senior freeze applications, found that in about 7,000 cases, seniors reported they made less than the minimum of $70,000 to qualify, when the tax returns showed their income exceeded the limit. The state Treasury sent letters at the end of March notifying recipients that they owed the state money.
The average check in the program is $1,041, treasury officials said.
The program allows seniors and the disabled to apply for a reimbursement if they have income below $70,000 and have been New Jersey residents for at least 10 years. The reimbursement is the difference between property taxes the first year enrolled in the program, and property taxes today. The program was frozen in last year’s budget, so checks remained at the same level as last year. About 159,000 seniors are currently enrolled in the program.
When the state last year conducted an audit of 2007 returns and applications, it sent out 1,200 letters to seniors, said Treasury spokesman Andrew Pratt. Of that, 422 successfully appealed. The state collected $1.6 million from the 778 who paid the reimbursement, Pratt said. He could not say why there was an increase in the number of letters sent out this year.
Without the audit, "People will make mistakes or they will intentionally violate the rules and get payments that they don’t deserve," said Pratt.
Douglas Johnston, a lobbyist for the AARP, doubted the state’s conclusions.
"I wouldn’t be surprised if some of those 7,000 had heart palpitations when they got the letters," he said. "Audits are appropriate but I find it very difficult to believe that 7,000 seniors are bilking the system."
Johnston said the rebates "are critical for seniors and disabled adults who are really struggling financially. This sort of thing can push them over the edge."
Seniors can appeal the state’s attempt to get the money back by showing extra income came by moving non-taxable funds from a 401K or Individual Retirement Account, said Pratt.
