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March 4, 2021
Question

New Jersey State Tax Refund

  • March 4, 2021
  • 1 reply
  • 0 views

On Line 54 of my NJ State return it indicates TAX DUE of $7,619.

 

On line 55 is Income Tax WITHHELD from my 1099's of $29,393.

 

The result on Line 78 is a REFUND of $21,774!

 

ALL Tax Withheld on the 1099's is from the REQUIRED MINIMUM DISTRIBUTION during 2020.

 

Is this correct? NJ State does not tax distributions from 401K's and IRA's?

    1 reply

    Employee
    March 4, 2021

    If you are age 62+, NJ has a retirement income exclusion of up to $75,000; but only if your total income is $100,000 or less.  Also note that NJ does not recognize QCD's.

    fanfare
    Employee
    March 5, 2021

    if you entered federal withholding in the NJ tax withheld box, you made a mistake.

    If the custodian withheld 29.393 for NJ tax, you should expect a big refund.

     

    It has nothing to do with how NJ taxes your pension income.

    based on your tax, you're probable not eligible for the exclusion.