Skip to main content
January 30, 2025
Question

Where in turbo tax do you add the 3 year NJ state tax exemption?

  • January 30, 2025
  • 1 reply
  • 0 views
I just retired with state pension and state tax is exempt on pension for 3 years

    1 reply

    AmyC
    Employee
    February 6, 2025

    You will be asked as you go through the state program. Go through each screen. There are several related to retirement. The 3 year rule should only be chosen if you will get all of your money back in 3 years. General rule will determine the taxable part of a distribution from a contributory plan other than an IRA.

     

    NJ taxes retirement savings while working and then gives an exclusion for retirement pay. See page 21 of Resident Income Tax Return Instructions lines 28a and 28b for exclusions.

     

    To see your forms and verify you are getting the correct exclusion:

    Congratulations!

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