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Level 2
March 17, 2021
Solved

NJ pension exclusion

  • March 17, 2021
  • 1 reply
  • 9 views

How do I show Federal taxable income as per the 1099-R, yet show NJ pension income as $0 (due to the 3 year rule?)

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Best answer by TylorValdez1

On screen 1 check the box for mult-state return. Then go to enter the pension and enter the amount to US and code the amount with a S in the source column in both the gross distribution and the taxable amount. The pension income will only flow to the 1040. The NJ return will not show anything.

1 reply

Level 6
March 17, 2021

On screen 1 check the box for mult-state return. Then go to enter the pension and enter the amount to US and code the amount with a S in the source column in both the gross distribution and the taxable amount. The pension income will only flow to the 1040. The NJ return will not show anything.