There are no known issues with this exclusion, so let’s make sure that you actually qualify.
There are two requirements to exclude all or part of the pension income that you reported on line 20a of your 2021 New Jersey Resident Return, Form NJ-1040:
- You (and/or your spouse if you’re filing jointly) were age 62 or older, or blind/disabled as defined by Social Security guidelines, on the last day of the tax year; and
- Your income on line 27 of Form NJ-1040 is $150,000 or less, with a full-year income requirement for part-year residents.
When only one spouse is 62 or older or disabled, you’re only allowed to enter only the pension income of that spouse. You can’t exclude the pension income of the spouse who’s younger than 62 and not disabled.
Please see Line 28a – Pension/Retirement Exclusion in the 2021 Instructions for the NJ-1040 for more information.
If you meet the guidelines for the exclusion, please reply back.
