NJ 2020 state taxes

[esppak]

NJ is following the federal guidelines with retirement distributions and taxes due to the corona virus under the cares act. More specifically federal is allowing taxes to be paid on the distributions for 3 years. After using turbotax the federal return shows one third of the amount as taxable but the NJ state shows 100% of the distribution as taxable. Is NJ not allowing the 3 year window to pay taxes on retirement distributions due to cares act declared federal emergency?

[KathrynG3]

New Jersey is following the federal guidelines and timelines for coronavirus distributions. See: New Jersey Division of Taxation: Retirement Income.

Please revisit the interview and verify what has been entered.

[TAG6415]

My NJ State Return was rejected; the reason is NJ Pension updated its tax law to follow the federal guidelines for corona virus-related distributions. Now I have to file for an extension since Intuit Turbo Tax won't have the update until May 20th. TurboTax didn't provide any instructions to help filing an extension with New Jersey. I tried to file an extension which requires an 80% tax payment for the extension to be approved. The estimated payment is $2700 so I entered 80% of this amount. If payment isn't received the extension will be denied. I tried entering the 80% of the estimated payment, using different cards and all failed. New Jersey doesn't have actual instructions for filing an extension but after some digging I found New Jersey requires 80% of the total tax due (Line 44 of form 1040). Even though there is over $4000 already withheld, I have to pay over $5600 to submit the extension request. So I go back into the New Jersey Division of Taxation to submit an extension again. After entering my personal information, I receive a message “You have already submitted an Extension request on 5/16/2021". I didn't receive any confirmation of the extension request via email nor was I given a request number. Now I might be stuck paying a penalty if I'm not able to rectify this situation by tomorrow, 5/17/2021. Why didn't Turbo Tax notify New Jersey taxpayers of this before submitting the NJ tax forms? I think Turbo Tax handled this whole matter horribly.
These updates for the NJ State tax form should have been in the system before the filing date. Thank you TurboTax for all the extra work and penalty I may be hit with.

[homerb]

I got a similar notice when I filed my NJ return.  It said to try again on May 20th when the latest updates are available.  Well today is May 20th and I refiled.  But I didn't get an opportunity to review the NJ return, so I have no idea if any changes were applied.  I guess we'll see if I get rejected.

[fanfare]

the tax law has not changed in NJ.

the Division of Revenue states they will be" flexible" and allow you to divide by three as on the federal return.

Is there a TurboTax update coming for NJ?
you should be able to do this manually without waiting for an assist from TurboTax software update.

It sounds like TurboTax has decided to force you to wait for software to make a choice.

There's no real advantage to doing this since your taxable income is going to be higher in 2021 and 2022