New Jersey Income Tax Exclusion for VA Disability and Milit…

New Jersey Income Tax Exclusion for VA Disability and Military Disability Retirement Pay

New Jersey Division of Taxation

Full exclusion from New Jersey taxable income

New Jersey does not tax VA disability income. The exclusion covers disability compensation and pension payments made to veterans or their families, grants for a home designed for wheelchair living, grants for a vehicle if you lost your sight or the use of a limb, and benefits under a dependent-care assistance program.

Check eligibility

How to apply

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

What you'll need

Your VA award letter showing the payments and what they are for.

Eligibility

You are filing a New Jersey income tax return
You receive VA disability compensation or pension, military disability retirement pay, a VA housing or vehicle grant, or dependent-care assistance benefits

Source

Official source

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