Retirement/pension Exclusion

[smokey433]

On my NJ-1040 2019 Page 3 line 28a does not have an entry. I believe the total here should be $32146.00 or something close to that figure. I am a retired military vet and rechecked all of my entries are correct. I also compared this return to my 2018. The difference was an entry was made on line 28a of my 2018 return, but not the 2019. Please look into this matter for me. Thank you.

v/r

H. R Read

[JotikaT2]

It sounds like there is an entry in the federal interview section that needs to be adjusted to reflect this income as being tax exempt for New Jersey.  Try the following:

1. Select the Personal tab.
2. Select Personal Income
3. Select I'll choose what I work on
4. Select continue until you see Your 2019 Income Summary.
5. Scroll down and select update to the right of IRA, 401(k), Pension Plans (1099-R)
6. Select Edit to the applicable 1099-R distribution (If you have more than one, you will need to repeat this step for each distribution.)
7. Select continue through the screens until you see Where Is This Distribution From?  Be sure to select Military pension or survivor's benefits.

This input should adjust your state return and correctly report it as not subject to New Jersey tax.  

If you are still having issues after making the change above, please comment so we can help you determine why the income is still being taxed.

[smokey433]

This was the first thing checked. I just rechecked & I do have the right block checked. What next?

[BillM223]

This year (and I don't know if this was done in 2018), the military pension is being excluded in a different place.

Please look at line 4d on your 1040. The military amount of $32,146 should be included in this amount (for federal purposes, obviously).

Now look at line 20a on page 2 of the New Jersey return. Is the number here the federal number less the $32,146? This is how my NJ test works.

It appears that the military pension is removed from taxable pensions on line 20a, so it doesn't need to be excluded on line 28a.

[fanfare]

Line 28 is for taxpayers over 62 who are eligible for the NJ Retirement Income Exclusion.

[smokey433]

I replied to your last email that I made sure that checked Military retirement on my 1099-R, Block 28A is still not filled in WHAT IS WRONG WITH YOUR PROGRAM.

[smokey433]

This did not fix the problem. It work on my 2018 return, but not this year's.

[fanfare]

if the total on Line 20a does not show a reduction for the amount of your military pension,

You can do an override.

Line 28 is for taxpayers over 62 who are eligible for the NJ Retirement Income Exclusion.

You'll have to file on paper via US Mail.

[fanfare]

@BillM223 In your test does the excluded amount show up on Line 20b ?

[smokey433]

No it doesn't and that is the problem

[fanfare]

No It doesn't have to be on 20b and that's not the problem.

If the military pension is all your retirement income, 

Line 20a should be zero. and so should Line 20b.

[smokey433]

The amount on line 20a is $32146. On my 2018 NJ line 20a Show $32246. That same year line 28a showed $10852. for taxpayer and $21394. for spouse for total of $32246. This area is blank for this year's taxes. It does need to be included on 28a or I will not be getting the exclusion I deserve.

[fanfare]

Now you are mentioning spouse.

Are you both on military pension?

the military pension should not be included in Line 20a.

TurboTax has a question about military pay as shown above.

if you can't get it to work you need to do an override of Line 20a.

Are you over 62? Line 28 is for persons over 62 regardless of what happened in 2018.

Are you over 62 and had other wages over $3,000?

Then Line 28b will never be greater than Line 28a.

Is you spouse over age 62? did she work this year and make over $3,000.?

[fanfare]

What is the amount on Line 28a ?

[fanfare]

If you are age 62 or older at the end of the year, you can do it either way

• subtract it out of Line 20a, or
• if you are eligible, include it on Line 28a.