Bill Text: NJ A4349 | 2024-2025 | Regular Session | Introduced
Bill Title: Excludes from New Jersey gross income tax income of certain related survivors of members of United States military who die in active duty.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-05-10 - Introduced, Referred to Assembly Military and Veterans' Affairs Committee [A4349 Detail]
Download: New_Jersey-2024-A4349-Introduced.html
Sponsored by:
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
SYNOPSIS
Excludes from New Jersey gross income tax income of certain related survivors of members of United States military who die in active duty.
CURRENT VERSION OF TEXT
As introduced.
An Act excluding from New Jersey gross income tax the income of certain related survivors of members of the United States military who die in active duty, and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Gross income shall not include during a taxable year amounts otherwise taxable received by a resident who is the surviving spouse of a resident of New Jersey who has died or shall die while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone or a qualified hazardous duty area during a period of combatant activities in such zone or area, or as a result of wounds, disease or injury incurred while so serving. The eligibility for this exclusion shall apply to taxable years in which the surviving spouse has not remarried.
b. Eligibility for exclusion from gross income tax under this section shall require the qualifying surviving spouse to certify on an annual pre-taxable year basis, on a form that shall be made available by the Director of the Division of Taxation of the Department of the Treasury, the person's anticipated taxable year status as a New Jersey resident and a widow or widower. The director shall provide an eligible surviving spouse with written proof of the exemption which shall include identifying information of the surviving spouse and shall indicate that the surviving spouse is exempt from the withholding of otherwise taxable wages received. Upon submission of the written proof by the surviving spouse to an employer subject to the requirement of withholding tax from wages pursuant to N.J.S.54A:7-1, a payor who may withhold tax pursuant to section 1 of P.L.1989, c.328 (C.54A:7-1.2), or an entity making a payment of compensation or remuneration for services subject to section 2 of P.L.2006, c.85 (C.54A:7-1.2), no wages or payment of compensation or remuneration to the surviving spouse shall be subject to withholding.
2. a. Gross income shall not include during a taxable year amounts otherwise taxable received by a resident who is the unmarried child under the age of 19, or who is otherwise qualified as a dependent for federal income tax purposes, of a resident of New Jersey who has died or shall die while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone or a qualified hazardous duty area during a period of combatant activities in such zone or area, or as a result of wounds, disease or injury incurred while so serving. To qualify for the exclusion under this section, an unmarried child under the age of 19, or who is otherwise qualified as a dependent for federal income tax purposes, shall have been either claimed as a dependent child by the deceased parent in the one or more taxable years preceding the taxable year that includes the date of death, or claimed as a dependent child by the surviving spouse for federal income tax purposes in a taxable year that follows the taxable year that includes the date of death.
b. Eligibility for exclusion from gross income tax under this section shall require the child to certify on an annual pre-taxable year basis, on a form that shall be made available by the Director of the Division of Taxation of the Department of the Treasury, the person's anticipated taxable year status as an unmarried New Jersey resident and a dependent for federal income tax purposes of either the deceased parent or the surviving parent for the taxable year specified in subsection a. of this section. The director shall provide an eligible child with written proof of the exemption which shall include identifying information of the child and shall indicate that the child is exempt from the withholding of otherwise taxable wages received. Upon submission of the written proof by the child to an employer subject to the requirement of withholding tax from wages pursuant to N.J.S.54A:7-1, a payor who may withhold tax pursuant to section 1 of P.L.1989, c.328 (C.54A:7-1.2), or an entity making a payment of compensation or remuneration for services subject to section 2 of P.L.2006, c.85 (C.54A:7-1.2), no wages or payment of compensation or remuneration to the child shall be subject to withholding.
3. The Director of the Division of Taxation of the Department of the Treasury shall adopt, pursuant to the "Administrative Procedures Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as are necessary to carry out the provisions of this act.
4. This act shall take effect immediately but shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill excludes from the New Jersey gross income tax all amounts of income otherwise taxable that are received by certain residents who are related survivors of members of the United States military who die in active duty. Those who qualify are a surviving spouse or unmarried surviving children of a resident of New Jersey who has died or shall die while in active service as a member of the Armed Forces of the United States, if such death occurred while serving in a combat zone or a qualified hazardous duty area during a period of combatant activities in such zone or area, or as a result of wounds, disease or injury incurred while so serving.
The New Jersey gross income tax currently provides a similar tax exclusion for a deceased Armed Services member for the taxable year in which a member of the Armed Forces of the United States dies while serving in a combat zone, or with respect to any prior taxable year ending on or after the first day served in a combat zone. New Jersey gross income also does not include military pension payments or military survivors' benefit payments paid to individuals by the United States with respect to service in the Armed Forces of the United States.
This bill expands the scope of income that is excluded from New Jersey gross income tax for the surviving spouse as long as the individual is a New Jersey resident and does not remarry, as certified on an annual basis to the Director of the Division of Taxation of the Department of the Treasury. The bill also excludes from New Jersey gross income tax any income received by a resident unmarried child who was claimed as a dependent by the deceased member of the Armed Forces of the United States or is claimed as a dependent by the surviving spouse. Under the bill, a surviving spouse or unmarried child would be required to annually certify their eligibility status to the Director of the Division of Taxation.
The bill provides that a surviving spouse or surviving child who makes the annual certification to the director would be provided written documentation indicating that the person would not be subject to State income tax withholding.
