The following was asked on April 5, 2021 and, other than an acknowledgement that a problem probably has existed for several years, no answer or resolution has been provided to date:
This issue relates to the calculation of estimated taxes for New Jersey and the NJ Pension Exclusion. For married filing jointly, the pension exclusion only applies for a total household income below $100,000. The exclusion immediately goes to zero for incomes over $100,000, even by one dollar. The NJ estimated tax calculation in TurboTax does not seem to handle this correctly. When a total income of over $100,000 is entered in TurboTax (Line 1 of the Form), the pension exclusion (Line 2) stills shows $100,000 and the gross income (line 3) is incorrectly reduced by $100,000. This would result in a significant underpayment estimated taxes and probable penalties. I also tried some other larger income values ($200k, $300k and greater) and the program continues to reduce each total income by the $100,000 exclusion, even though pension exclusion clearly does not apply. Am I missing something?
When will this problem be resolved?
