You are eligible for a $3,000.00 exemption on your Income Tax return if you are a military veteran who was honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States on or any time before the last day of the tax year. Your spouse (or civil union partner) is also eligible for an exemption if he/she is a veteran who was honorable discharged or released under honorable circumstances and you are filing a joint return. This exemption is in addition to any other exemptions you are entitled to claim and is available on both the resident and nonresident returns. You cannot claim this exemption for a domestic partner or for your dependents.
Claiming the Exemption
- When completing your tax return, you must fill in the oval (resident return) or check the box (nonresident return) to indicate that you are claiming this exemption. Otherwise, the exemption (s) will be disallowed.
- You must provide official documentation showing that you were honorably discharged or released under honorable circumstances from active duty the first time you claim the exemption(s).
The most common form of documentation to provide is a copy of your Certificate of Release or Discharge from Active Duty, DD Form 214, The United States National Archives and Records Administration can assist with obtaining a copy of your DD-214. You only need to submit a copy of your records the first time you claim the exemption.
You can certify for the exemption by sending your documentation and Veteran Exemption Submission Form to the Division before you file, which may help process your return faster. To certify:
- Use the secure document upload feature to submit your documentation and Veteran Exemption Submission Form. Enter the notice code VET and select P.O. Box 440; or
- Mail a copy of your documentation and Veteran Exemption Submission Form to: The New Jersey Division of Taxation, Veteran Exemption, P.O. Box 440, Trenton NJ 08646-0440; or
- Fax your documentation and Veteran Exemption Submission Form to 609-633-8427.
Once the information is received, the Division will provide a letter of receipt confirming your eligibility. Letters will be sent in January the first year you meet the qualifications. 2017 letters will be issued after January 1, 2018.