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kathymcbain
New Member

NJ state tax filing

NJ 401k covid withdrawl is not reflected in my return. I also, had to file an extension and paid 80% of the tax owed. How do I deduct that from my payment?

5 Replies
fanfare
Level 15

NJ state tax filing

If you used TurboTax, TurboTax does that bookkeeping.

kathymcbain
New Member

NJ state tax filing

It is not doing it. That is my issue. Please walk me through the steps on how to get my state return to match my federal for the 401k covid withdraw and where it asks me if I filed an extension and to deduct what I paid. I am afraid my taxes are going to be paid twice and it  is a substantial amount.  

fanfare
Level 15

NJ state tax filing

did you look at your NJ amend line 64?

If you used TurboTax , TurboTax might not ask you since it already knows.

 

I don't know why your taxable federal distribution amount for a 401k  would not carry right onto your NJ tax return.

SundayInSalem
Level 6

NJ state tax filing

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.

  1. Type estimated tax payments in Search in the upper right
  2. Select Jump to estimated tax payments
  3. On Estimates and Other Income Taxes Paid, scroll down to Payments with Extension
  4. Select Payments with 2020 state extension
  5. Choose New Jersey in the drop down and enter your payment
fanfare
Level 15

NJ state tax filing

@SundayInSalem 

even if you qualify for the exclusion you mentioned,

the distribution is entered and then a subtraction is applied.

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