This bill modifies the eligibility requirements for the retirement income exclusion by increasing the income limit from $3,000 to $25,000 for individuals aged 62 and older. This change applies to income received from various sources, including salaries, wages, and business profits, which were previously capped at the lower threshold. The bill maintains that taxpayers with a total gross income exceeding $100,000 will still be ineligible for the retirement income exclusion, ensuring that the exclusion is targeted towards lower-income retirees.

The bill also outlines specific income thresholds for different filing statuses, which increase progressively over the years. For instance, for taxable years beginning on or after January 1, 2020, the exclusion allows for up to $100,000 for married couples filing jointly, $50,000 for married persons filing separately, and $75,000 for single taxpayers. This structured increase aims to provide greater financial relief to retirees while ensuring that the benefits are directed towards those with limited income. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15