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Income Tax Exemption for Veterans

New for Tax Year 2017.  You are eligible for a $3,000 exemption on your Income Tax return if you are a military veteran who was honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States by the last day of the tax year. Your spouse (or civil union partner) is also eligible for an exemption if he/she is a veteran who was honorably discharged or released under honorable circumstances and you are filing a joint return. This exemption is in addition to any other exemptions you are entitled to claim and is available on both the resident and nonresident returns. You cannot claim this exemption for a domestic partner or for your dependents. 

http://www.state.nj.us/treasury/taxation/newexemptionveterans.shtml

Providing Documentation
You must provide a copy of Form DD-214, Certificate of Release or Discharge from Active Duty, the first time you claim the exemption. This form does not need to be provided each year. The  United States National Archives and Records Administration  can assist with obtaining a copy of your DD-214.

You can certify for the exemption by sending a copy of your DD-214 and  Veteran Exemption Submission Form  to the Division before you file, which may help process your return faster. To certify: