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Level 2
March 2, 2021
Question

NJ taxable pension and Federal three year spreading

  • March 2, 2021
  • 2 replies
  • 11 views

NJ does not recognize the the 3 year deferral on a Covid withdrawal from a pension plan. How do you get the NJ return to tax the full amount when you are only recognizing 1/3 of it on the federal return.

I tried State amount if different, but it always uses the 1/3 federal amount.

Any solutions?

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2 replies

Accountant-Man
Level 13
March 2, 2021

Good question. I will look into it, since I have a client in the same situation.

** I'm still a champion... of the world! Even without The Lounge.
Accountant-Man
Level 13
March 2, 2021

On my NJ client, it is taxing the full amount, not the one-third. Did you use the 8915E and 1099R box A to get the spread? {Sorry, I use Pro Series. But it should work, unless Lacerte is not smart enough.}

Like I said, NJ is taxing 100%.

** I'm still a champion... of the world! Even without The Lounge.
MAC222Author
Level 2
March 4, 2021

Yes, Lacerte is not smart enough.