In 2019 I withdrew $93,000 from my Qualified Retirement Plan. On my 1099-R, Line 1 shows $93,000 Gross Distribution. Line 2a Shows $93,000 Taxable Amount. Nothing in line 2b and line 3. Line 4 shows $18,600 Federal Income Tax Withheld. Nothing in Line 5 or 6. Line 7 only shows a Distribution Code of 7 and nothing in the IRA/SEP/Simple. Nothing in line 8 thru 11. Line 12 shows $0.00 State Tax Withheld. Line 13 shows my New Jersey State Payer's # and Line 14 shows $0.00 for State Distribution.
My questions is that not all of the $93,000 is earnings. The contributions where taxed with my wages earned. Why does my NJ State Tax Return Show the full $93,000 as taxable income.
If you contributed to the plan with after-tax money, then you should talk to the plan administrator to request a corrected Form 1099-R.
The 1099-R that you described is indicating that the full amount of the distribution is taxable. If a portion was not taxable, then box 2a would be checked and/or an amount would be included in box 9a or b.
The $93,000 I received is Taxed for Federal purposes. It is the state that I have a question on. My 1099-R shows a state distribution of$0.00 but the total of $93,000 is reflected in pension earnings on my New Jersey state return. What do I need to do in turbo tax so that this income is not reflected on my New Jersey state tax return?
Just because it was not included in Box 14 does not mean it is not taxable to NJ.
NJ Income Tax – Retirement Income. If you are a New Jersey resident, your pensions, annuities, and certain IRA withdrawals are taxable and must be reported on your New Jersey tax return.