Vincent Polistina
TRENTON - Disabled veterans who had debt discharged through the Total and Permanent Disability discharge program will not be subject to taxation thanks to bipartisan legislation sponsored by NJ Sen. Vince Polistina (R-2), along with Sens. Vin Gopal (D-11) and Andrew Zwicker (D-16) was signed into law Monday by Gov. Phil Murphy.
I am extremely pleased the Governor signed this bill into law. Some veterans have suffered significant disabilities in the line of duty including paralysis, loss of sight, or severe psychological trauma. The last thing they need to worry about is how they are going to afford to pay taxes on discharged debt, Polistina said in a release. This legislation will make sure New Jersey's disabled veterans will never have to pay taxes on discharged student loan debt and will offer financial relief and stability to these injured veterans during their time of need.
Under current law, discharge of indebtedness is not subject to New Jersey gross income tax.
The bill, S-3051/A-655, would codify that treatment as it applies specifically to certain federal student loan indebtedness of a disabled veteran who has had that debt discharged through the Total and Permanent Disability discharge program.
