jjh_nj
New Member

Retirement tax questions

I don't want to insult you, but you should look before you speak because you clearly lack an understanding of the issue.   For those affected (on who work for Intuit), I will explain it one more time.

The rollovers, in my case, were direct rollovers from employer retirement plans (i.e., 401(K)s) to IRAs and were not taxable at all.  But, if the IRAs had been SIMPLE IRAs instead of Rollover or Traditional IRA, it would be a different story.   Do a little research and you'll find that SIMPLE IRAs are not the same as Rollover or Traditional IRAs, and NJ treats rollovers from a 401(K) to a SIMPLE IRA differently (i.e. taxable event).   That is why they specifically ask that question in the Step-by-Step Interview process for the NJ State 1040 tax return.

I realize that you tell Turbo Tax who each 1099-R belongs to.  But that is entered when you are entering the information for the Federal 1040 return.   Turbo Tax keeps that into in a worksheet that is used in the Federal 1040 ONLY.   For a joint return, the Turbo Tax Federal 1040 program actually combines all the 1099-R amounts on the Fed 1040 form (box 4a).   And this is where the problem starts.

The problem is that the amount from Box 4a on the Federal 1040 form is then pulled into the NJ-1040 form, but only that combined amount is pulled over, not the info of how much was for each person (which is in the worksheets used in the Federal 1040 ONLY).   So, in the NJ-1040 Step-by-Step interview, the state portion of the program does not have the information on how much of that combined amount is attributed to each person filing under that joint state return.   So it incorrectly assumes that the full amount was posted for each person on the joint state return, and there is no way to correct it.   That is a mistake in the program logic, and Intuit should know better.