A $3,000.00 exemption on state income tax returns is available for some New Jersey Veterans who were honorably discharged or released under honorable circumstances from active duty. The exemption can be claimed by making the proper indication on the tax return and by providing official documentation of discharge status the first time the exemption is claimed. The NJ Division of Taxation accepts the Certificate of Release or Discharge from Active Duty, Form DD-214 as sufficient proof. There is a certification process which can help the exemption be processed faster, and more information is available on the NJ Division of Taxation website.
This information last reviewed: Nov 9, 2021