One of the lesser known ways of lowering your New Jersey tax liability is through the Veteran’s Exemption. This will lower your New Jersey tax, but it is specific in requirements and demands a bit of homework on the part of the taxpayer.
Do you qualify for the Exemption for Veterans?
The taxpayer must have been “discharged or released under honorable circumstances”. Next, they must have been discharged any time before the end of the tax year. It is eligible to residents and nonresidents of New Jersey. Unfortunately, the exemption is tied to the veteran themselves and the surviving spouse can only claim it in the year of the veteran’s death as long as they file a joint return and the spouse has not remarried by December 31 of the tax year or were divorced or legally separated from the spouse on the date of death. The exemption is no longer available after that year even if the surviving spouse does not remarry.
What to do if you qualify for the Exemption for Veterans
If you are eligible for this exemption, click here for detailed instructions on how to provide the necessary information, usually the DD-214 discharge papers and the submission form. The United States National Archives and Records Administration can assist with obtaining a copy of your DD-214. You can upload scanned documents through a secure upload, mail, or fax. It is recommended that this be done before the new year as confirmations will be sent out in January of the following year just in time for Tax Season.
Ryan Pizzi
Tax Services Group
Cg Tax, Audit & Advisory
732-676-4078 | rpizzi@cgteam.com