22 Jun What tax benefits does N.J. give veterans?

Q. What benefits on taxes can veterans get in New Jersey?
— Retired military

A. Thank you for your service.

If you are a veteran living in New Jersey, you are entitled to two benefits: a $250 reduction of your real estate taxes and a $6,000 state income tax deduction.

To be eligible for the $250 reduction of your real estate taxes on your primary residence; you must have been honorably discharged and served on active duty in the U.S. Armed Forces, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

To qualify, you must file the appropriate paperwork including a copy of your Honorable Discharge Certificate with your local real estate tax assessor, he said.

For the $6,000 exemption on your New Jersey income tax return, you’re eligible if you are a military veteran who was honorably discharged from active duty from the U.S. Military, Reserves or National Guard, he said. In addition, you must file a One-Time “Veterans Income Tax Exemption Submission Form” along with an acceptable “Discharge Document” with the state of New Jersey.

The two most common “Discharge Documents” are your Form DD-214 and your Honorable Discharge Certificate. Form DD-214 is the document you receive when you are separated from active duty before you are honorably discharged, he said.

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This story was originally published on June 22, 2023.

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