10 Dec Disabled veteran asks: Are there tax breaks for me?

Q. I am a 40% disabled honorably discharged vet. Are there any tax breaks out there for someone like me? I have been looking around but it can kind of be overwhelming.
— Veteran

A. Thank you for your service.

The state of New Jersey provides various tax benefits to military personnel.

An honorably discharged military veteran can claim an annual $6,000 veterans exemption in addition to the standard $1,000 exemption that all taxpayers are entitled to, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank.

“One must submit documentation of their honorable discharge prior to the first time they claim the veterans exemption,” he said. “An honorably discharged veteran also qualifies for an annual $250 property tax deduction.”

Combat pay is not taxable in New Jersey, Becourtney noted. Similarly, New Jersey does not tax U.S. military pension payments typically issued by the U.S. Defense

Finance and Accounting Service resulting from service in the U.S. Army, Navy, Air Force, Marine Corps or Coast Guard.

Also, New Jersey does tax federal civil service pensions or annuities issued by the U.S. Office of Personnel Management, however, this would be eligible for the pension exclusion if age 62 or older and based on income limits, Becourtney said.

Detailed information can be found on the New Jersey Division of Taxation website. Start with Publication GIT-7, Military Personnel and Families, containing links to additional information.

Email your questions to .

This story was originally published in December 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.