The Basic Information section contains New Jersey-specific questions that determine filing requirements, eligibility for deductions, exemptions, credits, exclusions, and other New Jersey tax benefits.
Most personal information transfers from the federal return, but New Jersey requires additional information to properly calculate the state return.
Program Entry
New Jersey Return → Basic Information
County of Residence
Select the County in Which You Lived
Select the New Jersey county where you resided during the tax year.
This information is used for state reporting purposes and to determine eligibility for certain New Jersey property tax relief programs.
Disabled on December 31
Taxpayer
Indicate whether you were disabled on the last day of the tax year.
Spouse
If filing a joint return, indicate whether your spouse was disabled on the last day of the tax year.
New Jersey uses this information when determining eligibility for certain deductions, exclusions, and property tax relief programs.
Did the Taxpayer or Spouse Die During the Tax Year?
Answer Yes if either the taxpayer or spouse passed away during the tax year.
This information ensures the return is prepared using the correct filing requirements.
Was a Federal Extension Filed?
Answer Yes if a federal extension was filed.
New Jersey generally recognizes a valid federal extension for filing purposes.
Did You File as a New Jersey Resident, Part-Year Resident, or Nonresident?
Answer all residency questions based on your New Jersey residency status during the tax year.
Your residency status determines:
- Which New Jersey return is required.
- Which income is taxable by New Jersey.
- Which deductions and credits may be available.
Were You 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?
Answer Yes if you were honorably discharged or released under honorable circumstances from active duty military service at any time on or before the last day of the tax year.
Answer No if you do not meet these requirements.
Why Does New Jersey Ask This Question?
New Jersey provides a Veterans Exemption for qualifying military veterans.
The answer to this question determines whether you are eligible to claim the exemption on your New Jersey return.
How Does This Affect My Return?
Eligible veterans may claim a $6,000 exemption on their New Jersey return.
If you are filing a joint return, your spouse may also claim a separate $6,000 exemption if they are a military veteran who was honorably discharged or released under honorable circumstances from active duty.
You cannot claim this exemption for:
- A domestic partner
- Dependents
- Any individual who does not meet the veteran eligibility requirements
The exemption reduces New Jersey taxable income and may:
- Reduce New Jersey tax liability
- Increase a refund
- Decrease the amount of tax owed
Documentation Requirements
The first time you claim the Veterans Exemption, you must provide official documentation showing that you were honorably discharged or released under honorable circumstances from active duty military service.
Your documentation must show your character of service (discharge).
Examples of acceptable documentation may include:
- DD Form 214
- Other official military discharge records
A list of acceptable documentation and instructions for submitting it can be found at:
https://www.nj.gov/treasury/taxation/military/vetexemption-documentation.shtml
Important
If both spouses qualify and are filing jointly, each spouse may claim their own Veterans Exemption. The exemption is not available for domestic partners or dependents, even if they are veterans.
Qualified Retirement Plan Distribution
Did You Receive a Distribution, Withdrawal, or Loan From a Qualified Retirement Plan?
Answer Yes if you received a distribution, withdrawal, or loan from a qualified retirement plan during the tax year.
Examples may include:
- Pension distributions
- IRA distributions
- 401(k) distributions
- Qualified retirement plan loans
This information may affect how New Jersey taxes retirement income and may impact eligibility for certain retirement exclusions.
Health Insurance Coverage
Does Anyone in Your Tax Household Not Have Health Insurance?
Answer Yes if you, or anyone in your tax household, did not have health insurance coverage for all or part of the year.
Answer No if everyone in your tax household had minimum essential health coverage for the entire year or qualified for an exemption.
Why Does New Jersey Ask This Question?
New Jersey requires residents who must file a tax return to maintain minimum essential health coverage for themselves and all members of their tax household throughout the year, unless they qualify for an exemption.
Part-year residents must have minimum essential health coverage, or qualify for an exemption, for each month they were New Jersey residents.
If someone in your tax household did not have the required coverage and does not qualify for an exemption, a Shared Responsibility Payment may be due on the New Jersey return.
You may choose to allow Department of Banking and Insurance to assist in obtaining health insurance. If you choose to do this, you will need to complete the NJ-EZ Enroll Form in the Miscellaneous Forms menu.
What Is a Tax Household?
For New Jersey purposes, a tax household includes:
- You
- Your spouse, if filing a joint return
- A domestic partner claimed on your return
- Any individuals claimed as dependents on your NJ-1040
- Any individuals you could claim as dependents, even if you choose not to claim them
What Is Minimum Essential Health Coverage?
Minimum essential health coverage includes, but is not limited to:
- Health plans purchased through the Health Insurance Marketplace
- Individual health insurance plans purchased outside the Marketplace that meet qualified health plan standards
- Grandfathered individual health insurance plans in effect on or before March 23, 2010
- Most employer-sponsored health insurance plans
- Retiree health plans
- COBRA coverage
- Medicare Part A
- Most Medicaid coverage
- Children's Health Insurance Program (CHIP)
- Coverage through a parent's health insurance plan
- Most student health plans
- Health coverage for Peace Corps volunteers
- Certain Veterans Affairs (VA) health coverage
- Most TRICARE plans
- Department of Defense Nonappropriated Fund Health Benefits Program coverage
- Refugee Medical Assistance
When Is a Shared Responsibility Payment Due?
A Shared Responsibility Payment may apply if:
- A member of your tax household did not have the required health coverage; and
- The individual does not qualify for an exemption.
However, you do not owe a Shared Responsibility Payment if your income reported on Line 29 of the New Jersey return is:
- $20,000 or less for most filing statuses; or
- $10,000 or less if your filing status is Single or Married/Civil Union Partner Filing Separately.
Part-year residents use their full-year income, not just the income earned while they were New Jersey residents, when determining whether they meet these thresholds.
If your income falls below the applicable threshold, do not complete the Shared Responsibility Payment section of the return.
How Does This Affect My Return?
The answer to this question may:
- Determine whether additional health coverage questions are required.
- Determine whether a Shared Responsibility Payment applies.
- Affect the amount of tax due on your New Jersey return.
Accurately answering this question helps ensure the New Jersey return is calculated correctly.
Did You Make Payments for Long-Term Care Insurance?
Answer Yes if you paid premiums for a qualifying long-term care insurance policy.
New Jersey may provide tax benefits related to qualifying long-term care insurance expenses.
Did You Maintain a Home for Yourself and Family?
Answer this question based on whether you maintained a household for yourself and your family during the tax year.
This information may affect eligibility for certain New Jersey filing statuses and tax benefits.
Did You Own or Rent Your Principal Residence?
Indicate whether your principal residence was:
- Owned
- Rented
- Provided through another arrangement
New Jersey property tax relief programs often depend on your housing situation.
Was the Home Subject to Local Property Taxes?
Answer whether the property was subject to local property taxation.
This information may affect eligibility for New Jersey property tax deductions, credits, and relief programs.
Property Tax Deduction/Credit Interview
Select Begin to complete the Property Tax Relief interview.
New Jersey provides several property tax relief programs that may require additional information regarding:
- Home ownership
- Rent paid
- Property taxes paid
- Residency
- Occupancy
Are You a Part-Year New Jersey Resident?
If you were a New Jersey resident for only part of the year, complete the Part-Year Resident information section.
Enter Residency Dates
Provide:
- The date you moved into New Jersey; or
- The date you moved out of New Jersey
These dates are used to determine the portion of income taxable by New Jersey.
Notes
- Most federal information transfers automatically to the New Jersey return.
- The Military Veteran question is important because it determines eligibility for the New Jersey Veterans Exemption.
- The health insurance question is used to determine whether a Shared Responsibility Payment may apply.
- Residency questions affect which income is taxable by New Jersey.
- Property tax questions are used to determine eligibility for New Jersey property tax relief programs.
- Keep records supporting any veteran status, residency dates, disability status, health insurance coverage, or property tax information reported on the return.
- First-time claimants of the Veterans Exemption must provide documentation showing an honorable discharge or release under honorable circumstances from active duty military service.