NJ Pension General Rule Simplified Method

[Stevenbirn]

Hello.  I cannot find how to enter in NJ a pension for the General Rule Simplified Method.  It does not give me that option on Turbotax Deluxe Mac desktop. How can do it?  Thank you

[MaryK4]

You will have to indicate in the Federal Taxes section when you enter the 1099-R information.  You will see a screen "Where is your distribution from?" 

General rule: You must use this method if you won't recover your contributions within 36 months from the date you receive your first payment from the plan, or your employer didn't contribute to the plan. Use this method to calculate a percentage of your annual benefits that is not taxable in New Jersey. Once you calculate the nontaxable percentage, it'll be used for all distributions from this plan in the future.

[Stevenbirn]

Thank you very much for your response.  When I say "None of the above" it calculates the simplified method, which is what I want, but it does it for federal as well as New Jersey.  For federal it was pre-tax contributions so I have to pay tax on the full amount, contributions and non-contributory portion.  New Jersey was after tax contributions so that is where the simplified method comes into play.  Turbotax does not seem to let me do it for just New Jersey and not federal.

[RobertB4444]

The system does not distinguish it.  In order to make this change, you will have to go all the way through and file the federal return but not the state return, then come back and make the adjustment and then file the state return.