How old are you? Your 401(k) withdrawal may be covered under the New Jersey retirement exclusion.
Married couples age 62 or older or disabled on the last day of the tax year can exclude up to $100,000 of retirement income if they earned $100,000 or less. If only one of you is 62 or older or disabled, you can still claim the maximum pension exclusion. However, you can exclude only the pension, annuity, or IRA withdrawal of the qualified spouse/civil union partner.
Single, or Head of Household, or Qualifying Widow(er)/Surviving CU Partners can exclude up to $75,000 if total income was $100,000 or less.
NJ Income Tax – Income Exclusions
New Jersey follows federal rules that allow you to spread a COVID-19 related distribution over three years. Do I pay more tax on my COVID withdrawal if taxes were withheld?
State extension payment
TurboTax does not automatically add the state extension payment to your return. You’ll need to put the payment in Deductions & Credits so it will transfer to your state return.
- Type estimated tax payments in Search in the upper right
- Select Jump to estimated tax payments
- On Estimates and Other Income Taxes Paid, scroll down to Payments with Extension
- Select “Payments with 2020 state extension”
- Choose New Jersey in the drop down and enter your payment
