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NJ Pension Exclusion and Estimated Taxes
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?