Tax breaks for N.J. veterans | Biz Brain
Veterans in New Jersey can benefit from some tax breaks.(ladyheart/morguefile.com)
Q. It is my understanding that veterans living in Continuing Care Retirement Community (CCRC) locations do not qualify for the $250 deduction. Does this mean they would not qualify for the special 2017 $3,000 deduction as well? -- Veteran
A. If you are a veteran in New Jersey, you are entitled to two benefits.
The first is a $250 reduction of your real estate taxes and the second is a $3,000 state income tax deduction, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
"The $3,000 state income tax deductions went into effect in 2017," he said. "If you qualify, the $3,000 deduction will appear on your 2017 NJ-1040 that you will file next year."
To be eligible for the $250 property tax deduction, you must be living in your own house and pay real estate taxes, he said.
"A CCRC is more like an apartment house than your own house," Kiely said. "Accordingly, you wouldn't be entitled for the $250 real estate tax reduction because you are not paying real estate taxes."
The only qualification to receive the $3,000 state income tax deduction is you were honorably discharged from the U.S. Armed Forces, National Guard or Military Reserves and you are required to file a New Jersey personal income tax return.
Thank you for your service!
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Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com's weekly e-newsletter.