topic 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? in Retirement tax questions

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 — Tue, 04 Jun 2019 23:37:40 GMT

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?

For pensions and annuities, use the Three Year Rule metho...

fanfare — Tue, 04 Jun 2019 23:37:41 GMT

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

answer corrected - see above.

fanfare — Tue, 04 Jun 2019 23:37:43 GMT

answer corrected - see above.

My question was how do you do this using turbotax, This a...

dmueller — Tue, 04 Jun 2019 23:37:44 GMT

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.

enter the 1099-R then answer the questions. I don't know...

fanfare — Tue, 04 Jun 2019 23:37:45 GMT

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..

The 1099-R form from my 403B does not include the deducti...

dmueller — Tue, 04 Jun 2019 23:37:49 GMT

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.

you need to use CD/Download version running on your compu...

fanfare — Tue, 04 Jun 2019 23:37:50 GMT

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

What does that mean? Every time I get into turbotax, it...

dmueller — Tue, 04 Jun 2019 23:37:52 GMT

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

according to your post heading it says you are using Turb...

fanfare — Tue, 04 Jun 2019 23:37:53 GMT

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

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

dmueller — Tue, 04 Jun 2019 23:37:54 GMT

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

you paid for it, but are you using it ?

fanfare — Tue, 04 Jun 2019 23:37:56 GMT

you paid for it, but are you using it ?

Click on Forms, and open the worksheet titled "Pension Wk...

fanfare — Tue, 04 Jun 2019 23:37:57 GMT

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

The forms field is grey. I am pretty sure I am using the...

dmueller — Tue, 04 Jun 2019 23:37:59 GMT

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.

Turbotax does start-up and run even if I disconnect from...

dmueller — Tue, 04 Jun 2019 23:38:04 GMT

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.

the option to access "Forms" is in the right side of the...

fanfare — Tue, 04 Jun 2019 23:38:05 GMT

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.
Scroll to Section 2

403b contributions in New Jersey already taxed. How do you avoid being taxed again?

Rich RAS — Sun, 19 Feb 2023 19:16:36 GMT

I haven't found a way to adjust the already taxed employee contributions. The problem seems to be that Turbo Tax only refers to retirement accounts as "IRA" They never ask you whether the funds came from a 401k or 403b. In New Jersey this matters greatly if those funds were employee contributions to the plan. At the moment I don't have an answer and plan to NOT use Turbo Tax for the New Jersey filing. I'll do that by hand.

Re: 403b contributions in New Jersey already taxed. How do you avoid being taxed again?

fanfare — Sun, 19 Feb 2023 19:57:44 GMT

You have a basis in your IRA as far as NJ is concerned because you could not deduct IRA contributions from your NJ taxable income in all those past years.

for a 401k, or 403b see here:

https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git1.pdf

TurboTax supports the Three-year Rule and the General Rule for New Jersey, if applicable.