Will I be taxed again for my NJ pension? I live in NC.

[starlight]

I took out my NJ pension early last year, so I was penalized and they (NJ) took a chunk out of that. I know that when I file my NJ state return, it will also be taxed again. Will NC also tax my NJ pension? Is the "Bailey settlement" only eligible for state employees in NC or for any government employees in any state that worked for 5 or more years? I was a teacher at a public school in NJ, so I was considered a state employee. Please let me know! Thanks!

[IsabellaG · Accepted solution]

Why are you filing a NJ return? If you lived in NC for the entire year of 2018, you should not be taxed by NJ. Pensions are taxed by the state in which you live, not the state where you used to work. NC will tax your pension, and the Bailey Settlement doesn't apply to you. Only retirees of the State of North Carolina and its local government or by the United States government retirees (including military). 

[starlight]

Thanks for clearing that up for me, Isabella!

[IsabellaG]

Glad I could help!