26 Aug I earn $85,000. Will I qualify for the pension exclusion?
Q. I am 65 and I retired in June. My total income from wages, and a bit from other sources, will be approximately $85,000 for 2019. Will I qualify for New Jersey pension exclusion?
A. It depends.
First, the New Jersey pension tax exclusion allows qualified New Jersey taxpayers to exclude all or part of the income received during the year from taxable pensions, annuities and IRA withdrawals, said Alex Coriddi, a certified financial planner with RegentAtlantic in Morristown.
The exclusion does not apply towards income from wages.
So you said you have income from “other sources.” If that includes taxable pensions, annuities or IRA withdrawals, then those specific sources of income may be excluded, Coriddi said.
“For the 2019 tax year, you are allowed to exclude as much as $80,000 of taxable pension, annuity, and/or IRA withdrawal income,” he said. “This exclusion amount will actually increase to $100,000 next year (2020).”
Here’s more on what counts as income.
To qualify for this exclusion, you have to be 62 years of age or older (which you are) or permanently disabled/blind, and gross income of $100,000 or less, Coriddi said.
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This story was originally published on Aug. 26, 2019.
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