This bill amends New Jersey's tax code to eliminate income-based limitations on the gross income tax exclusion for pension and retirement income. Currently, taxpayers aged 62 or older, or those who are disabled, can exclude certain pension and retirement income from their taxable gross income if their annual income is $150,000 or less. For those with incomes between $100,000 and $150,000, the exclusion is reduced. The proposed changes remove these income caps, allowing taxpayers of any income level who meet the eligibility criteria to claim the full exclusion.

The bill specifically introduces new provisions that allow for a partial exclusion for taxpayers with gross incomes exceeding $100,000 but not more than $150,000, which will be phased out. By removing the income-based limitations, the bill aims to provide broader tax relief to a larger number of taxpayers with pension and retirement income, thereby enhancing their financial well-being. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15