Income Tax Benefits for Veterans and Military Service Persons

🎖️New Jersey offers a $6,000 personal exemption for military veterans, which can be claimed on the NJ-1040 income tax return.

💰Starting in tax year 2021, combat pay is no longer taxable in New Jersey, including wages paid to service members hospitalized for injury in a combat zone.

🚫Military pensions, including survivors benefits, are not taxable in New Jersey and should not be reported on the state tax return.

📝To qualify for the veterans exemption, veterans must have been honorably discharged from active service in the military reserves or National Guard and submit the veterans exemption submission form.

🗂️Documentation for the veterans exemption should be submitted ahead of filing by uploading to the New Jersey online notice response service, NJ Honors, or by mail or fax.

Who is eligible for the veterans exemption?

—Military veterans who have been honorably discharged from active service in the military reserves or National Guard are eligible for the veterans exemption in New Jersey.

Is combat pay taxable in New Jersey?

—No, starting from tax year 2021, combat pay, including wages paid to service members hospitalized for injury in a combat zone, is not taxable in New Jersey.

Are military pensions taxable in New Jersey?

—No, military pensions, including survivors benefits, are not taxable in New Jersey and should not be reported on the state tax return.

What documentation is required for the veterans exemption?

—To qualify for the veterans exemption, veterans need to submit the veterans exemption submission form along with their DD214 or other proof of honorable discharge.

How can I submit documentation for the veterans exemption?

—Documentation for the veterans exemption can be submitted ahead of filing by uploading to the New Jersey online notice response service, NJ Honors, or by mail or fax to PO Box 440 in Trenton.

00:10In today's presentation, we will cover the veterans exemption, combat pay, and military pensions available to veterans and military service persons in New Jersey.

00:19New Jersey offers a $6,000 personal exemption for military veterans, which can be claimed on the NJ-1040 income tax return.

01:05Starting in tax year 2021, combat pay, including wages paid to service members hospitalized for injury in a combat zone, is no longer taxable in New Jersey.

01:35Military pensions, including survivors benefits, are not taxable in New Jersey and should not be reported on the state tax return.

01:50To qualify for the veterans exemption, veterans must have been honorably discharged from active service in the military reserves or National Guard and submit the veterans exemption submission form.

00:22Documentation for the veterans exemption can be submitted ahead of filing by uploading to the New Jersey online notice response service, NJ Honors, or by mail or fax to PO Box 440 in Trenton.