MonikaK1,
Thanks for your response and reference to the publication about New Jersey taxation of TSP contributions. This is a tricky tax problem, as can be seen by several in the community chat. To add more complexity, most all federal workers participate in the TSP retirement plan and the federal employees pension plan. So I entered two 1099-R's (one for my monthly pension payment and another for my random TSP withdrawal) and was prompted to use both the 3-year rule and the general rule for calculating my non-taxable contributions for each plan. As you suggest below, the NJ state step-by-step handles the inputs for each rule, which then populates the TurboTax form for Pensions and Annuities (very similar to NJ Schedule C form.)
Now I have to get my total contribution data from the TSP agency so TurboTax can calculate the tax exclusion amount for this year's withdrawal. The question is whether TurboTax will continue to track the exclusions year after year so I don't exceed my total contributions. If not, then I will have to keep a running total as a record.
Thanks, again!
