Governor Murphy signs law to exclude combat bonuses from gross income tax
TRENTON – Governor Phil Murphy today signed legislation (S2050) to exclude combat allowances from taxable gross income under New Jersey income tax. New Jersey is the only state currently taxing combat allowances, which is also not taxed by the federal government.
âThe military puts everything on the line for our state and our country. “ Governor Murphy said. “I am happy and proud that, even in the midst of our state’s most serious fiscal crisis, we have been able to find a way to make life easier for our troops and to bring long-awaited relief to the bravest among us. we.”
âAll distractions when deployed reduce combat effectiveness. This is positive action that will bear fruit for our women and men in combat â, said Major General Jemal J. Beale, adjutant general of New Jersey and commissioner of the New Jersey Department of Military and Veterans Affairs.
The main sponsors of S2050 are Senators Shirley K. Turner, Michael L. Testa, Jr. and Kristin M. Corrado, and Assembly members Annette Quijano, Cleopatra G. Tucker and Wayne P. DeAngelo.
âI want to thank Governor Murphy. It is a great tribute to our military personnel, especially those who serve in combat zones â, said Senator Shirley Turner. âOur soldiers put their lives in danger when their salary is below or close to the poverty line. Their families also make enormous personal sacrifices. New Jersey should honor military service, not tax it. I first introduced this bill 19 years ago, and I’m delighted that New Jersey is now joining the rest of the country in becoming the 50th state to exempt from combat zone taxes.
âPrevious versions of this important bill have been sitting in the Legislature for 10 years. When I was sworn in to the Senate in January, I made it one of my priorities and began to advocate for its passage and passage on behalf of American servicemen and women, â said Senator Michael Testa. “I am proud that by working with colleagues on both sides of the aisle we are finally reversing callous politics, and I thank the Governor for his support.”
“The soldiers, men and women, who risk their lives to fight for our freedoms in war zones are underpaid heroes”, said Senator Kristin Corrado. âThe military provides a combat zone allowance of $ 225 per week, and this new law allows our soldiers to keep more, exempting the premium from state income tax. As a nation, we ask more than enough of our US military. Taxing their combat pay is unnecessary and insensitive, and this flawed practice ends today. “
“Members of our military courageously face increased risks and immediate threats when serving in combat zones, and because of these risks they receive a combat bonus,” said Senator Dawn Marie Addiego. âNew Jersey is currently the only state in the country to tax combat zone wages. This legislation corrects that wrong and would benefit the husbands and wives, as well as the sons and daughters of our military personnel back home. “
âEach year, residents of New Jersey are deployed to countries around the world to fight on behalf of America. The soldiers who serve in the combat zones risk their lives to defend our country â, said MP Annette Quijano, MP Cleopatra Tucker and MP Wayne DeAngelo in a joint statement. âIt is right that we honor their courage and sacrifice by exempting from income tax the salary they earn during this period as well as any time spent in a hospital for injuries sustained in combat. Here in New Jersey, we value the service of our military and veterans. “
âI am proud today of Governor Murphy and the State of New Jersey for enacting the state combat zone tax exemption. It must have been a difficult decision to take in a difficult financial period â, said Lt. Col. Peter Lupo, vice president of legislative affairs, New Jersey Chamber of Veterans Affairs. For this reason, the soldiers of New Jersey will be deeply grateful. I can personally attest to that.
S2050 excludes military pay for service in a combat zone, or for hospitalization as a result of an injury while serving in a combat zone, from gross income taxable under New Income Tax. Jersey. The bill excludes combat bonuses in the same way as federal taxation. A combat zone is defined as any area that the President of the United States designates by order in council as an area in which the United States armed forces are engaged or have engaged in combat.
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