09 Mar What veteran tax breaks are available in New Jersey?
Q. I am a Korean War veteran. What veteran tax breaks are available?
A. Thank you for your service.
New Jersey offers several benefits to veterans.
In 2016, New Jersey increased the tax on gasoline.
That bill had a number of other items tacked onto it, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
One was a new income tax deduction for all veterans who have served on active duty and have an Honorable Discharge from the armed forces, National Guard or reserves, he said.
“This deduction is actually an additional personal exemption,” Kiely said. “For tax years 2017 and 2018 the exemption was $3,000. For tax years 2019 and after, the exemption is $6,000.”
Kiely said New Jersey allows you a personal exemption for simply being alive. There is an extra exemption for being over the age of 65 and for being blind or disabled. You are also eligible to claim an exemption for each dependent and for dependents under the age of 22 who are attending college, he said.
“New Jersey also allows a $250 credit for real estate taxes paid on your principal residence,” he said. “This credit has been around for a very long time. To get the credit you have to apply for it at your town’s real estate tax collector’s office.”
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This story was originally published on March 9, 2020.
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