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IRA rollover reporting issue on NJ return

Chancy

I had a 403b to IRA direct rollover. distribution code G (non-taxable, no Roth involved) in 2024. My fed return handled it fine, but state return includes amount on line 20b. NJ 1040 instructions for line 20b indicate rollover should not be included “if it qualifies for deferral for federal tax purposes”.
Line 20b appears to be used as part of gross income for new StayNJ property tax relief calculation

This was originally posted in "after filing" category but may be more appropriate under "state filing"

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Comments

kiarab

Hello,

Thank you for bringing this to our attention. I would like to take a look at your account and see what is going on. Can you please e-mail customer support from your account and ask them to send the issue to Kiara B? (I also work in customer support, so I can look more into this issue for you)

Make sure to mention that I told you to do so from the community pages.

Chancy

https://community.freetaxusa.com/discussion/comment/4620#Comment_4620

thank you, I will do that but please be aware that I had submitted an inquiry to customer support prior to posting in the community (issueid=4110258) which you may be able to access.

MatthewD

Hi Chancy,

Code G is a: Direct rollover to a qualified plan. That should be handled correctly on the state return, including NJ. Please double check that you have the correct code in box 7 when you enter the 1099-R.

Also, you may need to complete the "New Jersey pension income" page to make sure any pension distributions taxable on your federal return are excluded for NJ state purposes.

Puffin

I have the exact same problem as Matthew D. Box 7 says code G. How do I fix this problem? Do I have to file an amended state return?

Chancy

Puffin - I was the OP and Mathew D was a FreeTaxUSA customer service rep who responded, although another rep Kiara B ultimately was the person who assisted me. I assume you are a NJ taxpayer and your return was filed before you noticed the problem. After speaking with a person at NJ State Department of Taxation, they recommended I file an amended return to hopefully avoid an issue with my StayNJ application. I would urge you to contact Kiara B thru the FreeTax software. She is aware of the issue and was very helpful

LadyDi

I too have a problem in completing the NJ property relief packet because of a direct rollover from my husband's 403b account to a traditional IRA which went directly from institution to institution. First I called the number on packet for more information. The representative did not know why it would be included in income if it was a direct rollover from a union 403b account to a traditional IRA. She suggested calling the place which issued the 1099 R. I called the provider who said that the 10099-R was a code G which is not taxable but it is reportable and that the form was correct. Next I called the state help number on packet and this time after explaining the situation she said not to include it if I didn't receive any money from the transaction. I not sure about that answer so I continue to try to find out the correct action to take. Can someone from FreeTaxUSA advise what I should do?

KristineS

https://community.freetaxusa.com/discussion/comment/5840#Comment_5840

Hi ladydi,

If you will please login to your account and e-mail customer support we can assist you better.