403b distribution my nj contributions should not be taxed again in nj state, There is a line 20b for this on the NJ state form. How do if find this in turbotax?

[dmueller]

A fraction of my 403B distributions from my contributions are not taxable in NJ since I already paid NJ taxes on them.  The annuities and the MRDs are handled differently.  How does turbotax handle this?  As a rough guess it will reduce my taxable income by about 1/8 of the total 403B distribution, so in is not ignorable.  Also, since the distributions are spread across 10 contracts (5 annuities and 5 MRDs) can I combine all of them or must I enter all separately?

[fanfare · Accepted solution]

For pensions and annuities, use the Three Year Rule method or the General Rule method.
See NJ  Resident Return Instruction booklet.

[fanfare]

answer corrected - see above.

[dmueller]

My question was how do you do this using turbotax, This appears to be a case where filling out the forms manually is easier than turbotax.

[fanfare]

enter the 1099-R then answer the questions. I don't know whether that will be an easy or hard task or whether it will resolve your issue..

[dmueller]

The 1099-R form from my 403B does not include the deduction for the portion I already paid taxes on, so no this does not really help.  Turbo-tax does not seem have anywhere to enter the information needed for NJ state worksheets B and C which are needed to do this manually (though they are not filed with the NJ1040.

[fanfare]

you need to use CD/Download version running on your computer to access those worksheets

[dmueller]

What does that mean?  Every time I get into turbotax, it automatically checks for updates and installs any that exist.

[fanfare]

according to your post heading it says you are using TurboTax Online. Are you already using CD/Download ?

[dmueller]

yes, I paid for the download of the Premium version.

[fanfare]

you paid for it, but are you using it ?

[fanfare]

Click on Forms, and open the worksheet titled "Pension Wks-TP"

[dmueller]

The forms field is grey.  I am pretty sure I am using the downloaded version of Turbotax (in any case it continues to work if I disconnect from the internet).  I can't start it without a connection, however, because it says it wants to check for updates and I need to connect to the internet, but it does start which makes me think it is not the online version.

[dmueller]

Turbotax does start-up and run even if I disconnect from the internet (after a long pause because it can't find updates).  So I am using the downloaded version, but still no Forms.

[fanfare]

the option to access "Forms" is in the right side of the blue bar. OR enter CTL+2 on the keyboard
Then click "Open Form"
Then type "pension" in the box.
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