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NJ Pension Coronavirus - 3 Year Spread

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NJ Pension Coronavirus - 3 Year Spread

TheNov4

After spending almost 2 hours on the phone with Lacerte we solved 2 issues - 1 is that NJ does allow for any pension withdrawals to be recognized in income over 3 years as the federal CARES Act allows.  The investigation Lacente conducted has outdated information.  For the most current info hit this link -

https://www.state.nj.us/treasury/taxation/covidpension.shtml

Under the heading Reporting Distributions the 1st sentence clarifies this position.

The 2nd issue resolved is fixing an amended return for NJ regarding this issue since until Lacerte has fixed the program we will have to manually do so.  I was told to go into Screen 50 and override the pension income.  Other items might need to be overridden as well - when initially bringing over the "as originally filed" amounts, the pension and tax paid amounts were incorrect.

Hopefully this will be updated in Lacerte's software soon - they are aware of it and asked me to post this

Status: New
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