27 Feb The vet exemption if you owe money

Q. If you owe money to the state of New Jersey, will that stop you from getting the veteran tax break?
— Vet

A. Lots of veterans have asked us about how the new veteran tax break works.

It seems you’re in luck.

Bill Connington of Connington Wealth Management in Fairfield said he researched the New Jersey State tax guide, and he was unable to find any restrictions.

That said, we hope you can make things right with whatever you owe the state.

To review the rules of the tax break per the state:

“If you are a military veteran, you are eligible for this exemption if you were honorably discharged. Recently discharged veterans become eligible in the tax year they were released under honorable circumstances. When completing your 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.

“Your spouse or civil union partner also can take this exemption if he/she is a military veteran who meets the requirements above. You cannot claim this exemption for a domestic partner or your dependents. 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). Your documentation must list your character of service (discharge).

“If you do not have any of the documentation on the list, you may submit any other official documentation you have showing that you were honorably discharged or released under honorable circumstances from active duty.

“Once the Division of Taxation confirms your eligibility in your first year of filing, you do not need to submit documentation each year you claim this exemption. The Division will send you a letter confirming your eligibility, which you should keep with your records.”

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This post was first published in February 2018.