12 Mar How will my pension be taxed by N.J.?
Q. I have an annual pension of $23,850. I’m 65 and have less than $100,000 in income. How will the pension be taxed by New Jersey?
A. You’re in luck.
None of the income would be taxed because of the pension exclusion, said Kenneth Bagner, a certified public accountant with Sobel and Co. in Livingston.
The pension exclusion, for the tax year 2018, will allow you to exclude $60,000 of income if you are married filing jointly, $30,000 if you’re married filing separately and $45,000 if you file single or head of household.
Those amounts will go up every year until 2020, when it reaches $100,000 for those married filing jointly, $50,000 for those married filing separately and $75,000 for singles and heads of household.
To qualify, you (and/or your spouse/civil union partner, if filing jointly) are 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year, and, your total income for the entire year is $100,000 or less.
Email your questions to moc.p1553410686leHye1553410686noMJN1553410686@ksA1553410686.
This story was originally published on March 11, 2019.