There are two major taxpayer-friendly changes for the 2017 New Jersey individual income tax return (Form NJ-1040).
- The pension and other retirement income exclusion for taxpayers age 62 or older or disabled has been doubled. The exclusion, which is still available only to taxpayers whose NJ gross income is less than $100,000, is now up to $40,000 for joint filers, $20,000 for married filing separate filers, and $30,000 for all other filers.
- Starting in 2017, New Jersey residents who are military veterans that were honorably discharged can claim a $3,000 exemption. For the first year that the veteran claims the exemption, they must first obtain U.S. Dept. of Defense Form DD-214 (Certificate of Release or Discharge From Active Duty) at archives.gov/veterans. You then can either e-file the documentation to the State of New Jersey, fax a copy to 609-633-8427, or mail it to:
New Jersey Division of Taxation
P.O. Box 440
Trenton, NJ 08646-0440
Please note that these are the only ways to submit this documentation. Do not attach the documentation (either manually or electronically) to your 2017 Form NJ-1040. Once you submit the veterans’ documentation, you do not have to submit it for any future year. The full NJ veterans’ filing instructions summary can be found at: www.state.nj.us/treasury/taxation/military/vetexemption.shtml.
If you have any questions, please contact us to review your specific situation.
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