So here's the rub: the NJ retirement exclusion falls off the cliff at $100,000 of NJ gross income, so my guys don't get any exclusion MFJ. But when MFS, the cliff starts at $100,000 each(?); thereby giving them each $50,000 exclusion? That makes no sense to me. I am checking the box that they live together but file MFS.
This from NJ website:
You qualify for the pension exclusion if:
- You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and
- Your total income for the entire year was $100,000 or less.
MY bolding of the words "You" and "Your."
PS gives each NJ MFS $50,000 exclusion. They can't get it for MFJ, since joint income is more than $100,000, but they can each get $50,000 exclusion since their separate incomes are each less than $100,000?
That's what I read.
P 4. MFS 50k
edit: ok.. i see what you’re saying. You still have to match federal filing status. Rare that
you can get an advantage MFS. I don’t advocate overriding PS but you may have to.