Yes, military retirement
is exempt from tax in New Jersey.
Federal:
The New
Jersey military retirement exclusion is applied as you enter your 1099-R in the
Federal Taxes tab.
- Once in your return, enter "1099-R" into search box on
blue dashboard
- On "Your 1099-R Entries"
screen click Edit next to your military pension
- On screen titled " Where Is
This Distribution From?”, ensure the radio button to left of Military pension
is clicked and amounts in boxes are accurate. (see screen shot)
Note: As you're going through 1099-R entry screens
double-check you indicated that the IRA/SEP/SIMPLE box was not checked
and that the plan is a non-qualified plan.
State:
As you walk through your New Jersey
return, watch for a screen titled " Military Retirement
Distribution for You”. This screen will
state that military pension distributions are not taxable in New Jersey. (see screen
shot)