topic Nw Jersey Tax Exempt in Get your taxes done using TurboTax

Nw Jersey Tax Exempt

cander7373 — Sat, 01 Feb 2025 14:32:29 GMT

Newly retired officers in New Jersey from the Police and Fire Pension are exempt from state taxes on their retirement income until they collect/exceed the amount of their total contribution that was put into the retirement fund. This on average can take up to 18-24 months. When entering my 1099R I did not see any boxes to enter total amount exempt from state taxes.

Please help.

Re: Nw Jersey Tax Exempt

MaryK4 — Sat, 01 Feb 2025 17:10:00 GMT

You will be able to enter the information for the three-year rule after you enter the 1099-R. Look for the screen below. Under this method, you may exclude from taxable income all pension and annuity payments you receive until they equal the amount you contributed to the plan while you were working. Your recovery period – the time it takes to recover your contributions to the plan – begins on the date of your first pension payment and can last up to three years (36 months).

Re: Nw Jersey Tax Exempt

cander7373 — Fri, 07 Feb 2025 15:56:45 GMT

Thank you very much! My obligation changed from owing almost $4000 to the state to getting a refund over $600.

Appreciate all your help!