30 Sep Will my N.Y.S. pension be taxed if I move to N.J.?

Q. I am a retired New York State government worker who gets a civil service pension from the state. If I move to New Jersey, will New Jersey tax my pension? It doesn’t seem fair that New Jersey should be allowed to take money from a New York State pension.
— Thinking about it

A. The good news is that if you move, your pension, if subject to taxes, won’t be subject to taxes from two different states.

As for whether you will owe taxes, it depends.

If you are a New Jersey resident, your pension — regardless of what state it’s from — may be taxable depending on your income level, said Jonathan Donenfeld, a certified public accountant with JLD Tax & Accounting in Jersey City.

“For 2020, for a married couple filing jointly, New Jersey has an exclusion of up to $100,000,” he said. “For a married person filing separately, the exclusion is $50,000. And for an individual filing as a single, taxpayer or head of household, the exclusion is $75,000.”

To qualify, your overall income must be less than $100,000, he said.

If you go over that by one penny, you lose the entire exclusion.

So it will all depend on the size of your pension and other income. Consider meeting with a tax advisor who knows the law in both states and can do a projection for you.

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This story was originally published on Sept. 30, 2020.

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