How do you handle the three year average on 401k distribution on NJ Return?

[liz5]

On Federal Return, the program picked up 1/3 of the 401k distribution but NJ is picking up the full amount.  How do you adjust?

[qbteachmt]

Read this topic: https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/nj-efile-rejections/00/...

[liz5]

I should have mentioned that I am working on ProConnect Tax.  

[qbteachmt]

Yes, I see you posted in the ProConnect forum. But you can read that topic to see the expected update from Intuit for ProSeries is not until 5/20 or later, and you can see what happened to a NJ preparer, and how it is being handled by that person.

It isn't "three year average" but "spread over three years." NJ made a late retroactive change for conformity. As did other States.

[liz5]

I misspoke - yes, spread over three years.  And thanks - I will hold off filing the return until the update is made.