If I move to N.J., will our pensions be taxed?

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Q. I am considering moving from New York to either Mahwah or Ramsey. I’m 63 and I collect Social Security and a $44,000 pension from New York City. I earn another $3,000 a year from a part-time job. My husband, 68, also collects Social Security and has a $40,000 pension. Will the pensions be taxed in New Jersey?
— Mostly retired

A. We’ve got some great news for you.

You will not owe any tax to New Jersey for your pensions, Social Security and your part-time work, assuming that’s your only income.

New Jersey allows you to exclude up to $100,000 of your retirement income from New Jersey income tax because you meet the two requirements, said Gail Rosen, a Martinsville-based certified public accountant.

“The first requirement is that you and/or your spouse must be over 62 years of age as of the last day of the tax year and the second is your total income must be $100,000 or less,” she said, noting that New Jersey also doesn’t tax Social Security.

But be careful about that $100,000 income limit in the future.

“If your income is $101,000 you do not get any exclusion,” she said.

Email your questions to moc.p1594425740leHye1594425740noMJN1594425740@ksA1594425740.

This story was originally published on June 18, 2020.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.