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Tax Basics: Military personnel and veterans

Do I need to file a New York State tax return?

To determine your resident status and which return to file, if any, see Information for military personnel & veterans and refer to: Resident status and filing requirements.

What conditions may I qualify for?

Resident election

New York State conforms to the Servicemembers Civil Relief Act (SCRA). For tax years 2023 and after, for any taxable year of the marriage, a servicemember and their spouse may each elect to use, for purposes of taxation, any of the following (regardless of the date they married):

  • the residence or domicile of the servicemember.
  • the residence or domicile of the spouse.
  • the permanent duty station of the servicemember.

Extension to file

Need more time to file? To apply for a six-month extension, see Apply for an extension of time to file an income tax return.

If you’re stationed in a foreign country and qualify for an automatic two-month extension with the IRS, you automatically receive the same two-month extension with New York State.

Caution: The two extensions above do not extend the time to pay. You must make full payment of your estimated tax due when you request your extension.

If you qualify for a special condition such as combat zone or death of a spouse, you may qualify for an extension of time to file and pay your taxes.

Tax exemption for military spouses

Income earned by a military spouse in New York State may be exempt from New York State personal income tax. To obtain this exemption, the spouse must be:

  • considered a nonresident of New York State; and
  • residing in New York State solely to be with the servicemember who is in compliance with their military orders.

To determine your resident status as a military spouse and learn more about this exemption, see Information for military personnel & veterans and refer to: Taxability of military spouse's pay.

What income tax savings are available to me?

New York State subtractions

When calculating your New York adjusted gross income, you may be eligible to claim a subtraction for certain income you received as a servicemember. The following subtractions are available:

  • combat zone pay
  • organized militia
  • military pensions

To determine if your pay qualifies for subtraction see Information for military personnel & veterans and refer to the Tax benefits section.

New York State credits

You may be eligible for the following credits on your personal income tax return:

Resident credit

If you were a full-year or a part-year resident of New York State, and you had income sourced to and taxed by another state, you may claim a credit against your New York State tax. For more information, see Resident Credit.

Earned income credit (EIC)

EICs are refundable federal, New York State, and New York City credits for working taxpayers. The amount of the credits depends upon your filing status, your family’s earned income, and the number of qualified children in the household. To qualify, you must meet certain requirements and file a tax return, even if you don’t owe any tax or you aren’t required to file. For more information, see Earned income credit (New York State).

To learn about special rules for nontaxable military pay, visit the federal Publication 596, Earned Income Credit (EIC) and refer to: Nontaxable military pay.

Child and dependent care credit

If you paid expenses for the care of a qualified child or individual, be sure to keep good records of your expenses, such as receipts and statements. Examples include copies of checks or money orders used to pay expenses and itemized statements issued by a licensed childcare provider. You may be eligible for the New York State child and dependent care credit. For more information, see Child and dependent care credit (New York State).

For more information on all tax credit, see Income tax credits. 

What property tax benefits are available to servicemembers?

Veterans’ property tax exemptions

If you’re planning to leave active military service, there are three property tax exemptions that may be available to veterans who served significant active duty beyond training. Check with your local assessor to see if these exemptions are offered in your municipality.

Alternative veterans’ exemption

This exemption is available to veterans who served during a designated time of war, or who have received an expeditionary medal. Available in more than 95% of New York’s county, city, town, and village taxing jurisdictions.

Cold war veterans’ exemption

Veterans who served during the cold war (September 2, 1945, to December 26, 1991) are eligible for a tax exemption on their residential property.

Eligible funds exemption

If you purchased property with eligible funds you received upon discharge from active duty (such as pension, bonus, or insurance monies), this exemption may reduce the assessed value of the property, lowering its tax.

Other property tax savings

You may also qualify for several property tax exemptions offered through your municipality, county, or school district. For a full list of property tax exemptions and eligibility guidelines, see Property owners.

New York State school tax relief program (STAR)

STAR provides millions of homeowners with hundreds of dollars in savings each year on their primary residence. For more information and to register, see STAR resource center.

Tips

Keep good records

Be sure to keep your tax records such as returns, receipts, and statements, for three years. We may ask you to show your records to prove deductions or expenses claims.

E-file for free

See Free File your income tax return to see if you’re eligible.

Resources

New York State tax information for military personnel

IRS information for military personnel

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Tax Basics: Military Personnel and Veterans
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