New Jersey Income Tax Exclusion for VA Dependency and Indem…

New Jersey Income Tax Exclusion for VA Dependency and Indemnity Compensation

New Jersey Division of Taxation

Full exclusion from New Jersey taxable income

Dependency and Indemnity Compensation, the monthly VA payment to survivors of a service member who died in the line of duty or a veteran who died from a service-connected injury or disease, is tax free and is not taxed by New Jersey.

Check eligibility

How to apply

There is nothing to apply for. Leave your DIC payments out of the income you report on your New Jersey return.

What you'll need

Your VA award letter showing the DIC payments.

Eligibility

You are filing a New Jersey income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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