Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Co-Sponsored by:
Assemblymen Chivukula, Giblin, Caputo, Singleton, Lagana, Conaway, Eustace, Assemblywomen Vainieri Huttle, Tucker, Assemblymen Garcia, Johnson, DeAngelo, Assemblywoman Stender, Assemblyman Cryan, Assemblywomen Spencer, Jimenez, Assemblyman Fuentes, Assemblywoman Lampitt, Assemblymen Webber, Fiocchi, Diegnan, Assemblywoman Gove and Assemblyman Rumpf
SYNOPSIS
Wounded Warrior Caregivers Relief Act; Provides income tax credit to family caregivers of certain armed service members with physical disabilities.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Wounded Warrior Caregivers Relief Act to provide income tax relief to family caregivers of certain armed service members by supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the “Wounded Warrior Caregivers Relief Act.”
2. a. A qualified family caregiver shall be allowed a qualified veteran care credit against the tax otherwise due for the taxable year under the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of the federal veteran disability compensation of a qualified armed service member for which the qualified family caregiver renders care or $675, whichever is less.
b. If two or more qualified family caregivers qualify for the qualified veteran care credit for the same qualified armed service member, the amount of the credit allowed shall be allocated in proportion to each qualified family caregiver’s share of total care expenses provided for the taxable year.
c. If the qualified veteran care credit allowed pursuant to this section, together with any other payments, credits, deductions, and adjustments allowed by law, reduces a qualified family caregiver’s tax liability otherwise due for the taxable year under N.J.S.54A:1-1 et seq. to zero, the amount of the credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax in accordance with N.J.S.54A:9-7; provided however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
d. A qualified family caregiver that is not subject to tax in accordance with N.J.S.54A:2-4 for a taxable year may apply for a qualified veteran care credit using an application to be made available by the director. The due date for a qualified veteran care credit application shall coincide with the due date for annual gross income tax returns.
e. As used in this section:
“Qualified armed service member” means an individual that has served in any active or reserve component of the United States Armed Forces at a pay grade not exceeding O-3, or its equivalent, has been discharged, under conditions other than dishonorable, possesses a 60 percent disability for purposes of federal veteran disability compensation, and has resided with the qualified family caregiver in this State for not less than six months of the taxable year.
“Qualified family caregiver” means an individual resident of this State with gross income for the taxable year not in excess of $100,000 if filing jointly, as a head of household, or as a surviving spouse, or not in excess of $50,000 if filing separately or unmarried, that provides care and support to a qualifying armed service member to whom the caregiver is a relative.
“Relative” means an individual related by consanguinity within the third degree by law or blood.
3. This act shall take effect immediately and apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
Entitled the Wounded Warrior Caregivers Relief Act, this bill provides an income tax credit to family caregivers of certain former armed service members with service-connected disabilities. The purpose of the bill is to help family caregivers support the quality of life of former military personnel suffering from a complete disability owing to active duty service.
The bill sets the refundable qualified veteran care credit at 100 percent of the service member’s disability compensation or $675, whichever is less. The credit’s $675 limit applies per service member.
To qualify for a credit, a caregiver must be related to the service member within the third degree or closer and share a residence with the service member for no less than six months of the year. The caregiver’s gross income may not exceed $100,000 as a joint filer or $50,000 as a single or separate filer. The service member must have served in an active or reserve component of the United States Armed Forces at a pay grade not exceeding O-3 (captain or lieutenant depending on branch), been discharged, under conditions other than dishonorable, and suffer from a 60% disability for purposes of federal veteran disability compensation.