23 Apr Is the $6K deduction for veterans a state or federal benefit?

Q. Is the $6,000 veteran tax exemption from New Jersey state or is it a federal tax benefit?
— Veteran

A. We hope you’ve been able to take advantage of this tax benefit.

It’s a state benefit.

New Jersey allows veterans who served on active duty to take an additional $6,000 deduction on their New Jersey personal income tax return, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

He said to be eligible, you must have served on active duty.

“Your active duty service time must include active duty beyond boot camp,” Kiely said. “Many people in the reserves or National Guard go on active duty for boot camp. But because they then return to inactive status, they are not eligible for this deduction.”

The first time you claim the Veterans Deduction, you must complete a “Veterans Income Tax Exemption Form” plus proof of service, he said.

This proof of service is a copy of your Honorable Discharge and/or Form DD-214, he said.

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This story was originally published in April 2024.

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