New Jersey Pension Exclusion-Foreign Pension

Forum|Forum|1 year ago
January 11, 2025
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Hi there, I tried to get some answers on state tax forums, but no replies. Maybe here someone knows if foreign pensions (retirement) are eligible for NJ pension exclusion on1040 tax return. In NY we were able to exclude up to $20,00. In NJ, as far as I know, we should be able to exclude 100% of retirement (pension) if our gross income is below 150K and one of us is 62 or older, but couldn't find any info regarding foreign retirement pension though.

Thank you,

Not A Product Question

pk12_2

@ParkNYC ,

(a) For NJ pension exclusion, please visit this site --> https://www.irs.gov/pub/irs-pdf/p527.pdf

(b) by the way on looking over the up to $20,000 exclusion allowed by NY, the eligible pensions are NY State pension, or local govt. pensions or federal pension including Social Security. This does not cover foreign pension. So you may have to read-up on the subject and amend your NY filings ( in the worst case )

You foreign pension is from which country ? If US has a tax treaty with that country, there may be rules as to whom ca tax that income.

Is there more I can do for you ?

fanfare

To get the pension exclusion, your pension must appear on NJ-1040 Line 20a, and you and/or your spouse meet the other eligibility conditions of age and earnings (Line 27).

@ParkNYC