Bill Text: NJ S1698 | 2022-2023 | Regular Session | Introduced
Bill Title: Extends veteran's gross income tax exemption to spouses of deceased veterans.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-02-28 - Introduced in the Senate, Referred to Senate Military and Veterans' Affairs Committee [S1698 Detail]
Download: New_Jersey-2022-S1698-Introduced.html
Sponsored by:
Senator CHRISTOPHER J. CONNORS
District 9 (Atlantic, Burlington and Ocean)
SYNOPSIS
Extends veteran's gross income tax exemption to spouses of deceased veterans.
CURRENT VERSION OF TEXT
As introduced.
An Act extending the veteran's gross income tax exemption to spouses of deceased veterans, amending N.J.S.54A:3-1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:3-1 is amended to read as follows:
54A:3-1. Personal exemptions and deductions. Each taxpayer shall be allowed personal exemptions and deductions [against his] from gross income as follows:
(a) Taxpayer. Each taxpayer shall be allowed a personal exemption of $1,000.00 which may be taken as a deduction from [his New Jersey] gross income.
(b) Additional exemptions. In addition to the personal exemptions allowed in (a), the following additional personal exemptions shall be allowed as a deduction from gross income:
1. For the taxpayer's spouse, or domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), who does not file separately - $1,000.00.
2. For each dependent who qualifies as a dependent of the taxpayer during the taxable year for federal income tax purposes - $1,500.00.
3. Taxpayer 65 years of age or over at the close of the taxable year - $1,000.00.
4. Taxpayer's spouse 65 years of age or over at the close of the taxable year - $1,000.00.
5. Blind or disabled taxpayer - $1,000.00.
6. Blind or disabled spouse - $1,000.00.
7. Taxpayer who is a veteran honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States, a reserve component thereof, or the National Guard of New Jersey in a federal active duty status, as those terms are used in N.J.S.38A:1-1 - $6,000. The spouse of such a veteran shall be allowed this exemption beginning in the taxable year following the death of the veteran and until, but not including, the taxable year in which the spouse remarries; provided, however, the spouse shall only be allowed this exemption if the veteran was allowed this exemption for the taxable year in which the veteran died.
(c) Special Rule. The personal exemptions allowed under this section shall be limited to that percentage which the total number of months within a taxpayer's taxable year under this act bears to 12. For this purpose 15 days or more shall constitute a month.
(d) (Deleted by amendment, P.L.1993, c.178).
(e) Nonresidents. For taxable years to which a certification pursuant to section 3 of P.L.1993, c.320 (C.54A:2-1.2) applies, a nonresident taxpayer shall be allowed the same deduction for personal exemptions as a resident taxpayer. However, if (1) the nonresident taxpayer's gross income which is subject to tax under this act is exceeded by (2) the gross income which the nonresident taxpayer would be required to report under this act if the taxpayer were a resident by more than $100.00, the taxpayer's deduction for personal exemptions shall be limited by the percentage which (1) is to (2).
(cf: P.L.2019, c.146)
2. This act shall take effect immediately and apply to taxable years beginning on the January 1 next following enactment.
STATEMENT
This bill extends the veteran's gross income tax exemption to spouses of deceased veterans.
Currently, veterans are allowed a $6,000 exemption, which can be taken as a deduction from their income, for purposes of calculating their State gross income tax liability. If a veteran dies during a taxable year, the spouse of the veteran is allowed the exemption for that taxable year if filing a joint return. However, the spouse is not allowed the exemption in subsequent years. Under this bill, the spouse of the deceased veteran would be allowed to continue to claim the exemption until the spouse remarries.
