Yes, contributions to your 401(k) are excludable for New Jersey (NJ) income tax. Here is an excerpt from the NJ Department of Revenue:
If you are a New Jersey resident, wages you receive from all employers are subject to New Jersey Income Tax. Wages include salaries, tips, fees, commissions, bonuses, and any other payments you receive for services you perform as an employee. You must report all payments, whether in cash, benefits, or property.
The wages you report for federal tax purposes may be different than the wages you report for New Jersey purposes. For example:
- New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) Plans.
- Thank you for the assist @SteamTrain. The answer has been updated.
- @tcaliendo
[Edited: 02/15/2022 | 1:00p PST]
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