For 2020, I efiled both 2020 federal and NJ return. I took the 3 year covid distribution $60,000/ 3 years.
I took $20,000 as income for federal return. NJ retun had no choice and recognized $60,000.
When I efiled NJ on 4/18/21, NJ took the entire $60,000 as CRD income. there was no 3 year spreading.
I printed and saved a hard copy of NJ return. Now when I go back into the tax software for 2020 NJ return, $60,000 was spread automatically the $20,000 as income for NJ.
Proseries does not have a reconcilation form of efiled amount versus amounts reported on NJ return. I heard NJ had an update late May 2021 after I efiled. Is anyone seeing this or is there a ghost in my computer?
I wish Proseries can give an alert of what happened for 2020 NJ tax return for covid distribution.
2021 federal and state look okay for 3 year covid spread.
thanks, john
"Reporting Distributions
The Division is flexible in reporting CRD distributions. You can report income over three years or in one year (the year of distribution). In either case, you must use State reporting calculations to determine the New Jersey taxable and excludable amounts, since most retirement plans include previously taxed contributions."
From: https://www.state.nj.us/treasury/taxation/covidpension.shtml
Oh, I forgot the footer:
Last Updated: Wednesday, 05/12/21
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