Allows gross income tax deduction for surviving spouses of certain veterans.

A1954

ASSEMBLY, No. 1954

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Assemblyman WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblyman ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Co-Sponsored by:

Assemblyman Rumpf and Assemblywoman Reynolds-Jackson

SYNOPSIS

���� Allows gross income tax deduction for surviving
spouses of certain veterans.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

allowing a deduction against gross income for
surviving spouses of certain veterans, and 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 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.

���� �
8.�� Taxpayer who is the
surviving spouse of a qualifying veteran, during the surviving spouse�s
widowhood or widowerhood - $3,000. For purposes of this
subsection, �qualifying veteran� means an individual who:

����
(A)� dies while on,

����
(B)� was honorably
discharged from, or

����
(C)� was 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.

���� (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 or after January 1
next following the date of enactment.

STATEMENT

���� This bill provides an annual
exemption under the New Jersey gross income tax, in the amount of $3,000, to a
taxpayer who is the surviving spouse of a qualifying veteran of active duty
military service.�

���� Under current law, a taxpayer
who is a veteran honorably discharged or released under honorable circumstances
from active duty in the United States Armed Forces or a reserve component
thereof, or the National Guard of New Jersey in a federal active duty status,
may be eligible to receive a gross income tax exemption in the amount of $6,000
for each taxable year in which the veteran qualifies.� This bill extends this
veterans� exemption to the surviving spouse of a veteran who has: (1) died
while on active duty; (2) was honorably discharged from active duty; or (3) was
released from active duty under honorable circumstances.� If a surviving spouse
remarries, he or she becomes no longer eligible to receive the exemption.

���� The following terms are
defined elsewhere in the statutes and are incorporated by reference:� �active
duty� means duty in the active military service; and �armed forces� means the
land, air, and sea forces established by State or federal laws, as applicable.

���� This bill extends the
veterans� gross income tax exemption to surviving spouses in order to
acknowledge the burdens borne by the widows and widowers of our veterans.� Tax
relief of this nature is a means to further boost the economic security of
those individuals who sacrificed to safeguard our security and freedom.