New Jersey does not tax the income of a resident service member who dies while serving in a combat zone or qualified hazardous duty area, or who dies from wounds, disease or injuries received in a qualifying area, for the year of the death. The state also cancels any assessment of unpaid tax, does not assess tax for earlier years the service member spent in the combat zone or hazardous duty area, and refunds tax already paid for those years to the estate.
The executor or administrator of the estate should contact the New Jersey Division of Taxation to have the tax cancelled and to claim a refund of tax already paid for the qualifying years.
The death certificate or DD1300 report of casualty, documentation of the combat zone or hazardous duty area service, and the estate paperwork showing your authority to act.
