For the tax years beginning on or after January 1, 2017, taxpayers may be eligible for a $3,000 exemption on their New Jersey income tax return.
An eligible taxpayer must be a military veteran who was honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States by the last day of the tax year. Your spouse or civil union partner is also eligible for an exemption if the spouse or civil union partner meets that same test. This exemption is in addition to any other exemptions the taxpayer is entitled to claim on the New Jersey return and is available on both resident and nonresident returns.
Taxpayers cannot claim this exemption for domestic partners or for their dependents.
Taxpayers must provide a copy of Form DD-214 (Certificate of Release or Discharge from Active Duty) for the first year the exemption is claimed. This form does not need to be provided each year. The U.S. National Archives and Records Administration (https://www.archives.gov/veterans/military-service-records) can aid veterans with obtaining a copy of their DD-214. Note, only the Member 4 copy of the DD-214 will be accepted. This form is identified by the marking of Member 4 in the lower right hand corner of the DD-214.
Taxpayers can certify for the exemption by sending a copy of their DD-214 and Veteran Exemption Submission Form to the Division of Taxation (http://www.state.nj.us/treasury/taxation/pdf/veteransexemptionform.pdf) before they file, which may help process your tax return faster.
Use the New Jersey secure document upload feature (https://www.njportal.com/DOR/TCM/#/) to submit the DD-214 and Veteran Exemption Submission Form to the Division of Taxation. Enter the notice code VET and select PO Box 440; or
Mail a copy of your DD-214 and Veteran Exemption Submission Form to: The New Jersey Division of Taxation, Veteran Exemption, PO Box 440,Trenton, NJ 08646-0440; or
Fax your DD-214 and Veteran Exemption Submission Form to 609-633-8427
Once our office is advised that you have complied with this certification, if applicable, we need only to check an exemption box on your New Jersey tax return.