Whether or not you use the maximum pension
exclusion, if you are unable to receive Social Security or
Railroad Retirement benefits, but would have been eligible
for benefits had you fully participated in either program,
you may be entitled to an additional exclusion if you are:
- 62 years
of age or older; and
- Unable
to receive Social Security or Railroad Retirement benefits,
but who would have been eligible for benefits had you
been covered by either program.
Note: Since most taxpayers will receive
Social Security or Railroad Retirement benefits, relatively
few taxpayers are entitled to this Special Exclusion. If you reported either one of those on your Federal tax form, NJ does not need to ask you again.
https://www.state.nj.us/treasury/taxation/njit7.shtml
