Retirement/Pension Exclusion

You can exclude all or part of the pension income reported on line 20a if you meet the following qualifications

• You (and/or your spouse if filing jointly) were age 62 or older or blind/disabled as defined by Social Security guidelines on the last day of the tax year; and

• Your income on line 27 is $100,000 or less (part-year residents, see below).

For more information, see GIT-1 and 2, Retirement Income.

Part-Year Residents. Your income for the entire year must have been $100,000 or less to qualify for the exclusion. When completing line B above, prorate the maximum exclusion by the number of months you were a New Jersey resident.

Maximum Retirement/Pension Exclusion for 2020

Amount:                              For Filing Status:

$100,000                                Married/CU couple, filing joint return

$75,000                                Single  Head of household Qualifying widow(er)/surviving CU partner

$50,000                                Married/CU partner, filing separate return

Other Retirement Income Exclusion

If you were 62 or older on the last day of the tax year, you may be able to use the Other Retirement Income Exclusion. If you are filing jointly and only one spouse is 62 or older, only the income of that spouse can be excluded. You cannot exclude the income of the spouse who is younger than 62.

There are two parts to the exclusion: the Unclaimed Pension Exclusion and the Special Exclusion. Unclaimed Pension Exclusion. If you did not use your entire retirement/pension exclusion on line 28a, you may be able to use the unclaimed portion. Complete Worksheet D to determine if you are eligible and the amount to include on line 28b. Part-year residents, do not complete Worksheet D. Instead, use Worksheet E.

Special Exclusion. If you (and your spouse if filing jointly) will never be able to receive Social Security or Railroad Retirement benefits because your employer did not participate in either program, you may qualify for the Special Exclusion. If you qualify, you can claim $6,000 (married, filing joint; head of household; qualifying widow(er)) or $3,000 (single; married, filing separate).

Note: Do not claim the Special Exclusion if you (or your spouse if filing jointly) will ever be eligible for Social Security or Railroad Retirement benefits. See GIT-1 and 2, Retirement Income, for more information