22 May I made a mistake on the PAS-1 application. What’s next?

Q. Is it correct that for the PAS-1 application, normally untaxed income in New Jersey must be included — like Social Security and Roth IRA distributions? In the latest application, I did not think a Roth IRA distribution meant a Roth conversion so I did not include the Roth conversion amount. So what do I have to do now? Do I have to file some kind of updated PAS-1 to correct? Or should I wait to hear from them if they identify the accidental omission?
— Unsure

A. Your question is a common one.

Many New Jersey residents are finding the PAS-1 application a little confusing, especially when it comes to income that normally isn’t taxed in New Jersey, such as Social Security benefits and Roth IRA activity.

The PAS-1 instructions require applicants to include untaxed income, such as Social Security benefits and qualified Roth IRA distributions, in addition to the income reported on the NJ-1040, said Leo Chubinishvili, a certified financial planner and wealth advisor with Access Wealth in East Hanover.

Specifically, he said, the instructions for Line C state: “Enter the amount of any qualified distribution from a Roth IRA or the amount rolled over from a Roth IRA to another Roth IRA. This represents earnings and/or untaxed amounts for NJ purposes.”

“Only include your earnings. Do not include your previously taxed contributions, often referred to as “basis.”

A Roth conversion is treated differently from a Roth IRA distribution, Chubinishvili said.

“A Roth conversion occurs when pre-tax retirement funds — such as money from a traditional IRA — are converted into a Roth IRA — after-tax dollars,” he said. “Because those converted dollars are taxable in the year of conversion, they are already reported on the NJ-1040 as taxable income (Form NJ-1040, Line 20a).”

“That income then flows directly into the PAS-1 calculation through Line A (Form NJ-1040, Line 27, Total Income),” he said. “As a result, the Roth conversion amount does not need to be separately reported again on PAS-1 Line C.”

If you still believe there is a mistake, act now, he said.

Contact the NJ Division of Taxation or visit propertytaxrelief.nj.gov and ask how to submit a corrected application. Do not wait to see if the issue is flagged later, he said.

The current PAS-1 deadline is November 2, 2026.

Email your questions to .

This story was originally published in May 2026. 

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.