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smokey433
April 5, 2020
Question

Retirement/pension Exclusion

  • April 5, 2020
  • 1 reply
  • 0 views

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

    1 reply

    J
    JotikaT2
    April 5, 2020

    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.

    Source of retirement distribution

     

    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.

     

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    S
    smokey433Author
    April 10, 2020

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

    B
    BillM223
    April 10, 2020

    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.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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