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24 Mar Do I need to file a tax return if income gets the pension exclusion?
Photo: pixabay.comQ. My taxable income is $49,000. My pension exclusion is $75,000. Do I need to even file a state tax return every year?
— Taxpayer, maybe
A. The pension exclusion you mention is a valuable benefit and can save people on lots of taxes.
But yes, you will still have to file a state tax return.
If you have New Jersey gross income of $10,000 as a single or married filing separately, or $20,000 married filing jointly or head of household, you need to file, said Ken Bagner, a certified public accountant with CLA in Livingston.
“Gross income is before the pension exclusion on the New Jersey income tax return,” he said. “So you need to file and report your gross income for the pension of $49,000 and then the exclusion.”
The good news is if you do not have any other income, you should not incur any New Jersey income taxes, he said.
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This story was originally published on March 25, 2023.
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