Bill > A390

Introduced Session

This bill doubles the amount of certain retirement income a person 62 years of age or older or a disabled individual may exclude from taxable income under the New Jersey gross income tax. This bill also eliminates the income cap on excluding that income. Excludable pension income consists of such items as certain annuity, endowment or life insurance contract payments, pension, disability or retirement benefit payments from private or public plans, and IRA withdrawals. Currently, in addition to the exclusion for pension income, a person 62 years of age or older with less than $3,000 annual income from salary and wages, net profits from business, distributive share of partnership income or net share of S corporation income may be able to exclude additional nonpension income (such as income from private investments). The nonpension retirement income exclusion is coordinated with the pension exclusion so that the total amount excluded under the two provisions may not exceed a combined fixed dollar limit. This bill amends the pension and nonpension retirement income exclusions to increase the coordinated combined exclusion limits from $20,000 to $40,000 for a married couple filing jointly, from $10,000 to $20,000 for a married person filing separately, and from $15,000 to $30,000 for an individual filing as a single taxpayer. In 2005 the retirement income exclusions were disallowed for taxpayers with annual incomes of more than $100,000. This bill eliminates those income caps, restoring the retirement income exclusions for all taxpayers.

Committee Categories

Daniel Benson (D)*,  Tony Bucco (R)*,  Wayne DeAngelo (D)*,  Joe Lagana (D)*,  Jon Bramnick (R),  BettyLou DeCroce (R),  Thomas Giblin (D),  Sean Kean (R),  Greg McGuckin (R),  Nancy Muñoz (R),  Sheila Oliver (D),  Gail Phoebus (R),  David Rible (R),  Kevin Rooney (R),  Scott Rumana (R),  David Russo (R),  Holly Schepisi (R),  Parker Space (R),  Jay Webber (R),  David Wolfe (R), 

Introduced, Referred to Assembly Budget Committee (on 01/27/2016)