IRA rollover reporting issue on NJ return

Chancy
Chancy Member Posts: 4 Newcomer
in State Filing

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"

Comments

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 588

    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
    Puffin Member Posts: 1 Newcomer

    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
    Chancy Member Posts: 4 Newcomer

    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

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