topic New Jersey State Tax Refund in State tax filing

New Jersey State Tax Refund

CPTQUEEG666 — Thu, 04 Mar 2021 20:27:17 GMT

On Line 54 of my NJ State return it indicates TAX DUE of $7,619.

On line 55 is Income Tax WITHHELD from my 1099's of $29,393.

The result on Line 78 is a REFUND of $21,774!

ALL Tax Withheld on the 1099's is from the REQUIRED MINIMUM DISTRIBUTION during 2020.

Is this correct? NJ State does not tax distributions from 401K's and IRA's?

Re: New Jersey State Tax Refund

SweetieJean — Thu, 04 Mar 2021 20:39:40 GMT

If you are age 62+, NJ has a retirement income exclusion of up to $75,000; but only if your total income is $100,000 or less. Also note that NJ does not recognize QCD's.

Re: New Jersey State Tax Refund

fanfare — Fri, 05 Mar 2021 12:23:20 GMT

if you entered federal withholding in the NJ tax withheld box, you made a mistake.

If the custodian withheld 29.393 for NJ tax, you should expect a big refund.

It has nothing to do with how NJ taxes your pension income.

based on your tax, you're probable not eligible for the exclusion.