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, as specified in subsections a., b., k., and p. of N.J.S.54A:5-1. Additionally, the bill maintains that taxpayers with a total gross income exceeding $100,000 will remain ineligible for the retirement income exclusion.

The bill also outlines specific income thresholds for the retirement income exclusion based on filing status, which gradually increase over the years. For example, for taxable years beginning on or after January 1, 2020, the exclusion amounts are set at $100,000 for married couples filing jointly, $50,000 for married individuals filing separately, and $75,000 for single taxpayers. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 54A:6-15