I have a government pension that I and my employer contributed to (457b).
Throughout my career my contributions were exempt form federal tax
I paid NJ state income taxes throughout my career
On the NJ form I could exclude the income from this past year that I already paid tax on.
I moved to Delaware fro 2020
The Delaware program is taxing me on the full amount of my pension payments, which have already been taxed by NJ.
How do I exclude the pension payments for this year's Delaware tax return?
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No. you cannot exclude pension payments that you received as a Delaware resident that were previously taxed by New Jersey. The Diamond state does not provide a tax credit for pension income previously taxed by another state.
Delaware allows persons aged 60 or older to exclude up to $12,500 of pension and retirement income, including a 457b as a pension deduction.
Learn more at Retirement Information, IRA Topics, Pension Exclusions, Social Security Benefits.
I've seen that link and it doesn't not address it one way or the other.
Different scenario but the Supreme court ruled against Maryland with regards to double taxing. Maryland resident living in Maryland and working in PA, MD was taxing the income a second time.
https://www.governing.com/archive/gov-sup[product key removed]and-income-tax.html
When we still lived in New Jersey it was not taxed but took a lot of research to have it not taxed on the Turbo Tax program.
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