This bill amends N.J.S.54A:9-8 to extend the time period for taxpayers to file amended gross income tax returns specifically for correcting overpayments related to military pension payments or military survivors benefit payments. Under the new provisions, taxpayers can file a claim for credit or refund within 10 years from the time the return was filed or 10 years from when the tax was paid, whichever is later. This is a significant change from the current law, which requires claims to be filed within three years of the return being filed or two years from the tax payment, thereby allowing more time for taxpayers to rectify any errors in reporting these specific income types.

Additionally, the bill clarifies that the amount of credit or refund for overpayment of tax shall not exceed the amount that would be allowable if the claim had been filed on the date the credit or refund is granted. This change is particularly relevant for taxpayers who may have mistakenly reported military pension or survivors benefit payments as taxable income, as these payments are generally exempt from New Jersey gross income tax. The bill aims to provide relief and ensure that taxpayers have adequate time to correct their tax filings in light of these specific circumstances.