Solved: For NJ, I need to fill out the Three-Year Rule Method. I know the "Annuity Cost (basis)" is 'Total employee contributions.' What is the "Cost Recovered in Prior Years"?

For NJ, I need to fill out the Three-Year Rule Method. I know the "Annuity Cost (basis)" is 'Total employee contributions.' What is the "Cost Recovered in Prior Years"?

@Stefanie88P

Pension income is taxed only by the state that you live in when you receive it, even if it comes from a different state. But pension income is not taxable in Pennsylvania, so the 3-year rule does not apply. If you live in Pennsylvania, none of your New Jersey pension is taxable on your Pennsylvania tax return.