3 Tax Benefits for New York Veterans
Current and former members of the military are eligible for certain tax exemptions.
“These exemptions and credits are one small way we can show our gratitude to the brave and dedicated individuals who currently serve or have served in our military,” said Acting Commissioner of Taxation and Finance Nonie Manion in a 2017 press release.
In today’s post, we’ll examine a handful of the exemptions available for New York veterans.
As many as half a million New York veterans benefit from property tax exemptions, many of which are offered by local governments.
Depending on the circumstance, the property tax burden of a wartime veteran could be up to 15% or even as high as 25% if the veteran serves in a combat zone. Cold War veterans (between 1945 and 1991) could see up to 15% in exemptions.
If the veteran was disabled in the line of duty, they could see up to 50% off in exemptions.
How do these property tax exemptions work?
In September 2017, Gov. Cuomo signed a bill that allowed the 679 school districts the option to allow exemptions for Cold War veterans for the entirety of the time the veteran owns the property. Prior, it was 10 years.
To find out which of these exemptions applies to you, you’ll need to contact your local assessor’s office. Visit NYS’s Municipal Profiles website to get the contact information you need.
If your permanent home was in NYS before you entered the military, you don’t have to pay income tax on your active-duty pay. But it isn’t quite that simple.
You have to meet ALL three of the following conditions:
Didn’t have a permanent home in NY
Maintained a permanent abode outside of NY (this excludes military quarters like barracks, BOQ, etc.)
Spent less than 30 days in New York during the year
Basically, you need have not lived in New York almost at all for the entirety of the year to be eligible for this perk. You also had to be living somewhere off-base/ship to not owe income taxes.
Hire a Veteran Credit
There are two types of hire a veteran credit. They are:
Corporations subject to franchise tax
Individuals, estates and trusts under personal income tax laws
This credit applies if you or your business:
Hires a qualified veteran before January 1, 2020
Employees the qualified veteran for 35 hours
If the veteran is disabled, the credit is 15% of the total wages paid during the first full year of employment. That amount can’t exceed $15,000 per veteran.
If the veteran isn’t disabled, the credit is10% of the total wages paid during the first full year of employment. For nondisabled veterans, the credit is capped at $5,000.
These are just a handful of the tax benefits, credits, and exemptions that veterans can take advantage of. Reach out to one of our tax professionals and we’ll ensure you’re getting the most tax benefits from your service.
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