New Jersey veterans can get a $6,000 deduction on their state income tax returns, but they need to prove their military service and honorable discharge, state Treasurer Elizabeth Maher Muoio said Thursday.
Pre-certification involves sending a copy of the veteran’s DD-214 Certificate of Release, or Discharge from Active Duty, to the Division of Taxation, to prove military service and honorable discharge.
Gov. Phil Murphy signed a bill earlier this year, sponsored by Democratic legislators from Atlantic, Cape May and Cumberland counties, that doubled the deduction from $3,000 to $6,000.
An estimated 387,000 veterans in New Jersey are eligible, according to Assembly Democrats.
Sending the DD-214 early allows electronic returns to be processed without delay, Muoio said.
Veterans who file a paper return must provide a copy of the DD-214 with their tax returns the first time they claim the exemption.
Primary sponsors included Assemblymen Vince Mazzeo and John Armato, both D-Atlantic; and Assemblymen Matthew Milam and Bruce Land, both D-Cape May, Cumberland, Atlantic.
New Jersey veterans will now keep a little more of their earnings at state income tax time.
State Sen. Bob Andrzejczak, D-Cape May, Cumberland, Atlantic, was a co-sponsor in the Senate.
Milam said A-5609 would allow New Jersey veterans to keep an estimated $23 million more of their earnings each year.
Muoio noted that since the exemption went into effect for the 2017 tax year, the Division of Taxation has conducted outreach in concert with the New Jersey Department of Military and Veterans Affairs and has pre-certified about one-third of the state’s 400,000 eligible veterans.
A veteran’s spouse or civil union partner who is also a veteran can claim the exemption if they are filing a joint return. However, a veteran cannot claim this exemption for a domestic partner or dependents.
A bill to double the existing gross income tax deduction for honorably discharged or release…
Veterans who file paper New Jersey Income Tax returns (NJ-1040) or Non-Resident Income Tax returns (NJ-1040NR) must:
Enclose a copy of Form DD-214 with their tax returns the first time they claim the exemption. The U.S. National Archives and Records Administration can assist with obtaining the DD-214.
Check the oval on a tax return that indicates the veteran is taking the exemption, or the box on the nonresident return that indicates a veteran is taking an exemption.
Those who file electronically can send the proof to the Division of Taxation as follows:
Mail to New Jersey Division of Taxation, Veteran Exemption, PO Box 440 Trenton, NJ 08646-0440
Upload to njportal.com/DOR/TCM. Use POB 440 Code: VET.
Fax to 609-633-8427