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Why is Pension Exclusion for New Jersey incorrect?

2025 desktop New Jersey is applying exclusion on "pension (ira) income" using outdated tiers although the law changed in 2018.   Now, the law says there is only a single limit at $150,000.   Will Turbotax ever fix?

 

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2 Replies
RogerD1
Employee Tax Expert

Why is Pension Exclusion for New Jersey incorrect?

This comes from the State of New Jersey Division of Taxation:  "You can exclude all or part of the pension income reported if you (and your spouse) were 62 or older by 12/31 (for calendar year filers); and your total income was $150,000 or less'"

 

A full exclusion of $100,000 is available if you are Married Filing Jointly and your total income is $100,000 or less

 

For Married Filing Separately, a full exclusion is available if your total income is $50,000 or less

 

For all other filing statuses, the full exclusion of the pension income is available if you total income is $75,000 or less.

 

Partial exclusions of income apply to total income levels above the previous levels given, up to $150,000.

 

Here's a link to the details of the NJ Pension Exclusion

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Why is Pension Exclusion for New Jersey incorrect?

I'm finding the NJ website (which you cite) and the NJ 1040 are not consistent:  my understanding is the 1040 applies a single threshold (cliff) for pension exclusion at income of $150,000, while the web site says there are tiered thresholds......   

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