Knowledge and Insights

New Jersey Enacts New Income Tax Exemption for Veterans

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You may qualify for a $3,000 exemption on your New Jersey tax return if you are a military veteran who was honorably discharged or released under honorable circumstances from active duty in the U.S. Armed Forces on, or any time before, the last day of the tax year 2017. You will be able to add this exemption to any other exemptions that you are entitled to claim beginning with your 2017 tax filing. This exemption is available to both New Jersey residents and non-residents.

In order to receive this exemption beginning with the 2017 filing season, you must first provide official documentation to the New Jersey Division of Taxation that indicates you were honorably discharged from active duty. You will only need to provide this documentation in the first year you claim the exemption.  The list of acceptable documentation includes Form DD 214 – Certificate of Release or Discharge from Active Duty. Following is the link to the full list of acceptable documents: https://www.state.nj.us/treasury/taxation/military/vetexemption-documentation.shtml

Once you have your documentation, you will need to fill out the Veteran Income Tax Exemption Submission Form, which is available here – https://www.state.nj.us/treasury/taxation/pdf/veteransexemptionform.pdf and send both items by one of the three methods listed below before you file your tax return:

  • U.S. Postal Service – Mail form and copy of discharge document to:
    The New Jersey Division of Taxation
    Veteran Exemption
    P.O. Box 440
    Trenton, NJ 08646-0440
  • Fax form and discharge document to: 609-633-8427
  • Upload to secure New Jersey Portalhttps://www.njportal.com/DOR/TCM/#/

(Use notice code “VET” and select PO Box 440)

If you do not send in your Veteran Income Tax Exemption Submission Form and documentation prior to filing, you will need to submit the documents when you file your tax return which may cause delays in processing.

If you have engaged Mercadien to prepare your return, please provide a copy of the documents with your tax information.

For additional information, please visit the New Jersey Division of Taxation website: https://www.state.nj.us/treasury/taxation/military/vetexemption.shtml

Please contact us at solutions@mercadien.com or 609-689-9700 if you have any questions about this program.