NJ Form 1040 shows exclusion amounts on line 28a and 28b. The amounts on 28a and 28b are including same items. As a result 28c is doubled up. How do I fix that?

[KathrynG3]

Line 28c should add Line 28a and 28b. There may be an unclaimed pension exclusion amount or special treatment based on how the interview was completed.

To make sure your details are accurately captured, return to the interview and run through the interview again.

To prove the calculation and check the rules, see the 2020 Instructions for the NJ-1040, beginning on page 21.

GIT 1 & 2: New Jersey Retirement Income.

[mar45grow]

Isn't line 28b only for part-year residents?  If you were an NJ resident for the whole year, then this should be zero?  I am an NJ resident for the whole year, so why was line 28b filled out?

[Cynthiad66]

See who is included in Line 28b below.  As @KathrynG3 stated above there is a total exclusions at Line 28c should add Line 28a and 28b. There may be an unclaimed pension exclusion amount or special treatment based on how the interview was completed.

Line 28b – Other Retirement Income Exclusion

If you were 62 or older on the last day of the tax year, you may be able to use the Other Retirement Income Exclusion. If you are filing jointly and only one spouse is 62 or older, only the income of that spouse can be excluded. You cannot exclude the income of the spouse who is younger than 62.

There are two parts to the exclusion: the Unclaimed Pension Exclusion and the Special Exclusion.

Unclaimed Pension Exclusion.

If you did not use your entire retirement/pension exclusion on line 28a, you may be able to use the unclaimed portion. Complete Worksheet D to determine if you are eligible and the amount to include on line 28b. Part-year residents, do not complete Worksheet D. Instead, use Worksheet E.

Special Exclusion. If you (and your spouse if filing jointly) will never be able to receive Social Security or Railroad Retirement benefits because your employer did not participate in either program, you may qualify for the Special Exclusion. If you qualify, you can claim $6,000 (married, filing joint; head  of household; qualifying widow(er)) or $3,000 (single; married, filing separate).

Note: Do not claim the Special Exclusion if you (or your spouse if filing jointly) will ever be eligible for Social Security or Railroad Retirement benefits.

See GIT-1 & 2, Retirement Income, for more information.

Part-Year Residents. If you did not use your entire prorated retirement/pension exclusion on line 28a, you may be able to use the unclaimed portion. Complete Worksheet E to determine if you are eligible and the amount to include on line 28b

[mar45grow]

The error is in the software itself.  It seems to be adding the same amount in line 28a in line 28b.  For example, I am 64 years old filing head of household and the only income I have to report is 16a Taxable interest income of $100 and line 20a Pensions, Annuities, etc..of $20,000.  My Turbo Tax NJ tax return shows:

27   Total Income                                             20,100

28a Retirement Pension Exclusion.             20,000

28b Other Retirement Income Exclusion  20,100

28c  Total Exclusion                                       40,100

For the total exclusions, it seems to be picking up line 28a twice, thus showing the wrong total exclusion amount.  I think my 28b should be zero since I was able to claim the full pension exclusion in 28a.  My pension income of $20,000 is less than threshold for my filing status.  The software does not ask me to complete Worksheet D.  I think the software does it, and instead of deducting 28a in the worksheet, it adds it to the unclaimed exclusion amount.