At Thorgood Law Firm, we deeply appreciate the sacrifices made by veterans. To honor their service, New York State offers numerous valuable tax breaks and financial benefits. Below, we outline ten important tax-related benefits that veterans should know about.
1. Real Property Tax Exemptions
Veterans in New York can access several property tax exemptions:
- Eligible Funds Exemption: A partial exemption applies to property bought with pension, bonus, or insurance funds, capped at $5,000 in assessed value.
- Alternative Veterans’ Exemption: Offers a 15% exemption on residential property value for wartime service, with an extra 10% for combat-zone service.
- Cold War Veterans’ Exemption: Applies to those who served between September 2, 1945, and December 26, 1991, providing exemptions based on disability ratings, capped at $40,000 or equivalent.
2. Full Exemption for Disabled Veterans
Veterans with severe disabilities might receive a full exemption for specially adapted homes designed to accommodate their disabilities. This exemption significantly reduces the financial burden on veterans dealing with service-connected disabilities.
3. Transfer of Property Tax Exemptions
If veterans sell their property and buy another within the same county or city, they can transfer their property tax exemption to the new property, prorated for the remainder of the fiscal year, as long as they reapply for the exemption.
4. Tax Credit for Low-Income Veterans
New York State offers the Real Property Tax Credit (Form IT-214) for low-income veterans, providing up to $375 as either a tax credit or cash payment. Eligibility depends on income thresholds and property values or rent paid.
5. School Tax Relief (STAR) Program
Veterans aged 65 or older with incomes below $63,750 benefit from the STAR program, significantly cutting school property taxes by an average of 45%. This helps senior veterans better manage their finances in retirement.
6. Cooperative Apartments Exemption
The Cooperative Apartments Exemption for veterans in New York allows veterans residing in cooperative apartments to claim property tax exemptions proportional to their ownership stake in the cooperative. The portion of real property owned by a cooperative apartment corporation that corresponds to the shares held by a tenant-stockholder veteran is deemed to be vested in that veteran.
This means that the veteran’s proportional ownership stake, as represented by their shares in the cooperative, is eligible for a property tax exemption, provided all other eligibility criteria are met. The exemption is credited against the assessed valuation of the cooperative property, and the resulting tax reduction is passed on to the veteran by the cooperative corporation.
However, there are limitations to this exemption. Veterans residing in dwellings subject to certain provisions of the Private Housing Finance Law (articles two, four, five, or eleven) are not eligible for this exemption. Additionally, the exemption applies only if the municipality where the property is located adopts a local law, ordinance, or resolution allowing for such exemptions after a public hearing.
It is also important to note that the exemption does not apply to school taxes. This ensures that the tax relief is limited to certain types of property taxes, excluding those levied for educational purposes.
7. Tax Exemption for Veteran Organizations
Real estate owned by veteran-focused organizations like the American Legion or Veterans of Foreign Wars, which is exclusively used for veteran-related purposes, is fully exempt from property taxes. This supports community groups dedicated to serving veterans.
8. Military Pay Exclusion
Active-duty military pay earned by individuals who are not domiciled in New York is excluded from state income taxes. This exemption recognizes the service and sacrifice of nonresident service members.
9. Burial Allowance
The burial allowance for veterans in New York State provides reimbursement for burial and interment costs up to $2,500 for eligible veterans interred in a New York State not-for-profit cemetery. This allowance is available to honorably discharged members of the uniformed services of the United States who were residents of New York State at the time of their death. Eligibility also extends to veterans with a qualifying condition or discharged LGBT veterans, provided they received a discharge other than for bad conduct or dishonorableness.
The reimbursement is considered a plot interment allowance, and any federal allowances under applicable U.S. laws must first be applied toward interment costs before the state allowance is granted. Eligible recipients for this program are those who bore the cost of the funeral as the agent in control of the disposition of the remains.
To receive the allowance, an application must be submitted, and evidence of the decedent’s military service must be provided in the manner prescribed by the state commissioner. Upon verification of the application, the state commissioner will certify the reimbursement to the state comptroller for payment to the eligible recipient. It is important to note that any false statements in the application may result in penalties under the penal law.
10. Educational Tax Benefits
Veterans attending college can benefit from tuition assistance covering the full undergraduate tuition at State University of New York (SUNY) institutions or the actual tuition charged, whichever is lower. This benefit is provided without reductions from federal educational benefits like the GI Bill, making higher education more accessible.
Important Documentation and Eligibility
To claim these tax benefits, veterans must typically present proof of service, such as their DD-214 or other military records, to local assessors or relevant authorities. Local governments may further extend or modify these exemptions, so it’s important to check specific local laws and regulations.
Let Thorgood Law Firm Help You Maximize Your Veteran Benefits
Navigating tax breaks and understanding eligibility requirements can be challenging. Thorgood Law Firm, with decades of experience in tax law, helps veterans access and maximize these important tax benefits.
Our experienced tax attorneys provide:
- Personalized guidance tailored to your individual situation.
- Assistance in compiling necessary documentation.
- Representation if disputes arise with tax authorities.
- Strategic advice to ensure you receive all available benefits.
To learn more about how Thorgood Law Firm can help you take full advantage of veteran tax benefits, contact us today at (212) 490-0704 or visit us at 100 Park Avenue, 16th Floor, New York, NY 10017.
Your first consultation is always free. Let us help you secure the financial relief you deserve as recognition for your valued service.
