NJ Line 20b Incorrectly Populated

Forum|Forum|1 year ago
February 13, 2025
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Turbotax 2024 (and 2023) is populating NJ line 20b with 1099-R non-IRA rollover amounts (distribution code G) that are found on the Federal tax return (line 5a minus line 5b). NJ line 20b is for excludable pension, annuity, and IRA distributions/withdrawals, i.e., previously taxed contributions, not for rollovers. Per NJ GIT 1 & 2: "Do not report on your State return an lump-sum distribution you roll over to a traditional IRA, or other eligible plan if the rollover qualifies for deferral under federal income tax law. The amount rolled over (minus previously taxed amounts) is taxable later when it is withdrawn."

The Turbotax helpline agent suggested I manually remove the amount posted on NJ line 20b. That is not the answer. It would seem there is a Turbotax programming error that needs to be fixed.

DSG4Author

It's been a week with no response.

Is there anyone from Turbotax who is concerned with the accuracy of the product?

fanfare

Employee

While it does not belong there, by a certain TurboTaxian type of logic, the rolled over amount is an "excludable IRA withdrawal". It does not affect your tax.

Evidently this is pretty low on the priority list for bugs to be fixed.

DSG4Author

While this error does not impact NJ taxable income, it has a downstream impact. The amount in NJ Line 20b is included in income that is used to calculate eligibility for NJ's three property tax relief programs. Erroneously inflating Line 20b could prevent some tenants and homeowners from receiving property tax relief benefits for which they would otherwise be eligible.