3119280
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Butno
Returning Member

Nj state tax

New Jersey absolutely taxes my 401k contributions each paycheck how do I let them know not to tax the$145000 during distribution 

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
rjs
Level 15
Level 15

Nj state tax

New Jersey stopped taxing 401(k) contributions in 1984. Unless you made contributions before January 1, 1984, your 401(k) distribution is fully taxable.


The income that is taxed by New Jersey each year is determined on your New Jersey tax return, not by anything on your paycheck. The New Jersey tax that is withheld from your paychecks is just a down payment towards the tax for the year that is calculated on your tax return. It's the New Jersey wages in box 16 of your W-2 that determines what income is taxed by New Jersey. Ask your payroll department to show you how the New Jersey wages in box 16 of your W-2 are calculated. Box 16 does not include 401(k) contributions.

 

Hal_Al
Level 15

Nj state tax

 TurboTax (TT) will ask you if you made 401k contributions before 1984. If so, TT will use NJ worksheet C, to calculate the taxable portion of your 401k distribution. 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question