Pension retirement exclusion: can i get info re nj retirement/pension exclusion?

[tbleak]

where can I find info on the NJ pension exclusion?   Number 28a on the NJ tax return.

[KatrinaB · Accepted solution]

The retirement income exclusion is available to taxpayers with $100,000 or less in gross income who are 62 or older or (blind or disabled). The exclusion is being increased over a four-year period. Please view the New Jersey link below for more information.

https://www.state.nj.us/treasury/taxation/whatsnew2018.shtml

[Dusasdad]

I tried researching this online and got inaccurate information. When I called the TurboTax help line, Tom, the very helpful agent directed me to the following website:

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

The exclusion is only if you make less than $100,000. however, the exclusions vary according to your tax filing status and the year which is being filed. I had read online that the exclusion went up to $80,000. for tax year 2019. However, this is for married couples. As I am single, my exclusion is only $60,000.  If you look at the website above, the table clearly delineates what exclusion you are entitled to year-by-year. It increases again for tax year 2020.

I hope this saves some people from the confusion which might be caused, as it was for me, by inaccurate website postings.

Good Luck everyone:-)

[NJ-2013]

How can I find the details of how my pension exclusion was calculated by TT?

My pension income showed an exclusion amount, but my wife's pension income, has an exclusion of zero.

[DaveF1006]

Yes, according to this NJ state link, you qualify for the pension exclusion if: 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 $100,000 or less.

The age in this case may have been the disqualifying factor. Also check both 1099R's to make sure that you clicked on the right name of who the 1099R belonged to.

[ Edited 02/15/22| 07:30 PMPST]

[SweetieJean]

@DaveF1006 

Beginning with Tax Year 2021, the income limit for a NJ Retirement Income Exclusion increases (on a partial basis) to $150,000.

State of NJ - Department of the Treasury - Division of Taxation - Retirement Income Exclusions

[NJ-2013]

I found the latest info at https://www.nj.gov/treasury/taxation/njit7.shtml.