pension distribution excluded from NJ State return

Forum|Forum|3 years ago
March 11, 2023
1 reply
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I am currently working full time , 64 years old and I get a distribution from a couple of small pensions. These are distributions from private firms. Not disabled or a veteran. Income is less that $70000 per year. distributions are taxed in the federal portion but coming up exluded in New Jersey. I have been receiving the income for 2 years. I googled this and it looks like it should be taxable.

LindaS5247

Level 14

Good news! You can exclude all or part of the pension income reported on your federal tax return, on your New Jersey State tax return, if you meet the following qualifications:

You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and
Your total income for the entire year was $150,000 or less.

New Jersey has made some changes to the taxation of pensions and other retirement income in an attempt to encourage seniors to stay in the state for retirement for tax years begininning in 2019.

Click here for detailed information regarding Retirement Income in New Jersey.

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