Qualifying for a military veteran $3000 income tax exemption

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, you are eligible for a $3,000 exemption on your income tax return.  If you file a joint return and your spouse or civilian union partner is also a veteran honorably discharged, he/she is eligible for the exemption.

Claiming the exemption

Fill in the oval on the resident return or check the box on the nonresident return to indicate that you are claiming the exemption.

Providing documentation

You will be asked for official documentation showing that you were honorably discharged or released under honorable circumstances from active duty only for the first time you claim the exemption. Your Certificate of Release or Discharge from Active Duty (Form DD-214) is most often submitted. You can get assistance in obtaining this document from the United States National Archives and Records Administration.

Certifying the exemption

  • You can upload your documentation and your completed Veteran Income Tax Exemption Submission Form 183kb to the NJ Division of Taxation
    • Use the notice code VET and select P O Box 440.
  • If you prefer to mail the forms, send them to:

The NJ Division of Taxation
Veteran Exemption
P O Box 440
Trenton, NJ 08646-0440

  • You can fax to 609-633-8427

Here is a link to the form as a PDF:

http://www.state.nj.us/treasury/taxation/pdf/veteransexemptionform.pdf

About the Author

Scott Cost, CPA, MST, is a Senior Manager in the SobelCo Tax Practice. Scott has been a recognized leader in the Firm’s tax department for nearly two decades. He is frequently sought out for his experience in the tax area, where his real-world experience is augmented by earning both a Master of Taxation degree and a Bachelor of Science in Accounting. This combination of technical skills and hands-on experience has enabled Scott to add significant value to our clients.

Along with a focus on corporate and individual tax preparation, compliance, and strategy, over the years, Scott has also developed a depth of competency in supporting clients with many aspects of financial accounting as well as with their implementation of internal controls.