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Level 1
June 6, 2019
Solved

How is the Pension exclusion for NJ-1040 calculated? My two year comparison is showing this year's exclusion to be almost twice what it was last year.

  • June 6, 2019
  • 1 reply
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Best answer by SweetieJean

That is correct. NJ's Pension Exclusion increases every year for the next few years.

https://www.forbes.com/sites/ashleaebeling/2016/10/13/new-jersey-retirement-income-break-to-quintupl...

http://www.state.nj.us/treasury/taxation/njit7.shtml

1 reply

Alumni - Champ
June 6, 2019
Level 2
February 25, 2022

2020 taxes did not have any NJ pension exclusion.  2021 has a difference of -25% can this be correct?  what is it based on?

fanfare
Level 15
February 25, 2022

NJ changed the law for tax year 2021.

If your NJ total income  (line 27) is in the range $100,000 to $150,000 you get a partial exclusion.