Income Tax Exemption for Veterans

$3,000 Exemption for Veterans

You are eligible for a $3,000 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 honorably 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

  1. 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.
  2. You must provide a copy of Form DD-214, Certificate of Release or Discharge from Active Duty, with your return the first time you claim the exemption(s).

Providing Documentation

You must provide a copy of your Certificate of Release or Discharge from Active Duty, DD-214, the first time you claim the exemption. We can only accept the member 4 copy of DD-214. This form does not need to be provided each year. The United States National Archives and Records Administration can assist with obtaining a copy of your DD-214.

You can certify for the exemption by sending a copy of your DD-214 and Veteran Exemption Submission Form to the Division before you file, which may help process your return faster. To certify:

Note: We can only accept the member 4 copy of DD-214.

If you do not certify before you file for the exemption, you will need to submit a copy of your DD-214 when you file using:

  • A Paper Return. Enclose a copy of your DD-214 with your return;
  • NJ Fill’nFile. Upload your DD-214, along with all of your other documentation, into the repository;
  • Other Electronic Filing Methods. If you file your return using NJ WebFile, third-party software (such as TurboTax), or you have a tax professional who electronically submits your return, you can send a copy of your DD-214 and Veteran Exemption Submission Form using one of the three certification methods listed above.

More information from New Jersey Division of Taxation.