02 Mar Vet exemption without a tax return?

Q. If I no longer file taxes because I am on Social Security, should I send in the form for the New Jersey veteran exemption anyway?
— Veteran

A. Let’s start with the general rules for taxation of Social Security benefits.

If you have no other taxable income other than Social Security, you probably are not paying tax on your benefits, said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield.

“One item to note is that tax-exempt municipal bond interest is considered when determining if any of your Social Security benefits are taxable,” he said.

In general if your modified adjusted gross income (MAGI) is in excess of $25,000 for single taxpayers and $32,000 for married filing joint taxpayers, 50 percent of your Social Security benefit is subject to tax. If MAGI exceeds $34,000 for singles and $44,000 for married couples, 85 percent of your Social Security benefits are taxable.

Now to the New Jersey veterans exemption.

Starting in 2017, veterans can claim an additional $3,000 exemption to reduce their New Jersey taxable income, Gobo said. This is for military veterans who were 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.

This exemption is in addition to any other exemptions you are entitled to claim, Gobo said.

“If your only income is Social Security, you are not required to file a New Jersey tax return as New Jersey doesn’t tax Social Security benefits, so there is no current income tax benefit to filing the New Jersey Veterans Income Tax Exemption Submission Form,” Gobo said. “However, if in the future you are required to file a New Jersey income tax return, you will need to file the form to be able to claim the additional veteran tax exemption.”

Email your questions to .

This post was first published in March 2018.