This bill modifies the eligibility requirements for the retirement income exclusion by increasing the income limit from certain sources. Specifically, it raises the threshold for taxpayers aged 62 and older, allowing them to exclude retirement income if they receive no more than $25,000 from specified sources, such as salaries and business profits, instead of the previous limit of $3,000. This change aims to provide greater financial relief to retirees by allowing them to retain more income without losing eligibility for the retirement income exclusion.

Additionally, the bill maintains a cap on total gross income for eligibility, stipulating that taxpayers must have a gross income of not more than $100,000 to qualify for the exclusion. This ensures that while the income limit from other sources has increased, the overall income threshold remains in place to target the benefit towards those with lower overall earnings. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15