This bill proposes to eliminate the income-based limitations on the gross income tax exclusion for pension and retirement income in New Jersey. Currently, taxpayers aged 62 or older, or those who are disabled, can exclude certain amounts of pension and retirement income from their taxable gross income, but only if their annual income is $150,000 or less. For those with incomes between $100,000 and $150,000, the exclusion is reduced. The new legal language inserted into the bill removes these income caps, allowing taxpayers of any income level who meet the eligibility criteria to claim the full exclusion.

The intent of this legislation is to provide broader tax relief to individuals receiving pension and retirement income by allowing them to exclude a greater portion of their income from taxation. By removing the existing income thresholds, the bill aims to benefit a larger number of taxpayers, thereby enhancing financial support for retirees and those relying on fixed incomes. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15