From NewJersey.com: “Retirees facing tax shock.” Excerpt:
Retirees who earn more than $100,000 may be in for a shock next year: A little-noticed law enacted in July could mean a state income tax increase of as much as 67 percent.The law, which is expected to generate $45 million, eliminates the “pension exclusion” for taxpayers earning more than $100,000. And unlike other sections of the state’s graduated income tax, this law does not provide any phase-in for those whose incomes are just over the $100,000 threshold.
That means a retired couple earning $100,001 could end up paying $1,105, or 67 percent more income tax than a couple making $99,999 because the second couple can continue to exclude up to $20,000 from taxable pensions, IRAs or 401(k)s and the first couple cannot.
The article notes that about 15,600 households will likely be affected.
(Source: Benefitslink.com)