topic pension distribution excluded from NJ State return in Retirement tax questions

pension distribution excluded from NJ State return

rcyusanj1958 — Tue, 24 Feb 2026 03:20:10 GMT

I am currently working full time , 64 years old and I get a distribution from a couple of small pensions. These are distributions from private firms. Not disabled or a veteran. Income is less that $70000 per year. distributions are taxed in the federal portion but coming up exluded in New Jersey. I have been receiving the income for 2 years. I googled this and it looks like it should be taxable.

Re: pension distribution excluded from NJ State return

LindaS5247 — Sat, 11 Mar 2023 22:13:15 GMT

Good news! You can exclude all or part of the pension income reported on your federal tax return, on your New Jersey State tax return, if you meet the following qualifications:

You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and
Your total income for the entire year was $150,000 or less.

New Jersey has made some changes to the taxation of pensions and other retirement income in an attempt to encourage seniors to stay in the state for retirement for tax years begininning in 2019.

Click here for detailed information regarding Retirement Income in New Jersey.

Re: pension distribution excluded from NJ State return

fanfare — Sun, 12 Mar 2023 02:43:15 GMT

It should not have been NJ taxable last year, and possibly the year before, depending on your birthday and your income in those years.