Q. My wife and I have a gross income of $115,000 before subtracting any pension exclusion and therefore do we do not get the present pension exclusion of $20,000. When the pension exclusion goes to $40,000 next year and $100,000 in 2020, will the gross income still be $100,000?
A. Sorry. If you continue your $115,000 annual income, you’re going to miss out on the pension exclusion.
The $100,000 gross income threshold will apply in each tax year regardless of the pension exclusion amount in effect at that time, said Megan Newby, a certified public accountant with Wilkin & Guttenplan in East Brunswick.
“As of now, the $100,000 gross income threshold is not indexed for inflation,” Newby said. “However, the threshold amount may be revisited before the exclusion is fully phased in during the 2020 tax year.”
We’ll all be waiting…
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