If a service member dies while serving in a combat zone, or from injuries sustained in one, New York imposes no state tax or penalties for the tax year of the death, and waives any unpaid tax or penalties for earlier years. Tax the service member paid while serving in the combat zone is fully refunded to the estate or the surviving spouse, and any unpaid assessed taxes are cancelled.
Contact the New York State Department of Taxation and Finance as the surviving spouse, executor or administrator, and file the return or refund claim for the service member with proof of the death and of the combat zone service.
The death certificate or DD1300 report of casualty, documentation that the death occurred in a combat zone or resulted from injuries sustained there, and the service member’s tax records.
