How will N.J. tax my COVID hardship withdrawal?
Posted May 11, 5:30 AM
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Q. I took a COVID hardship withdrawal from my retirement account in 2020. New Jersey did not adapt the same guidelines as the federal government, which allowed the income to be spread over three years. While I understand this, I paid a portion of the money back to my retirement account. Should New Jersey be taxing me on the entire withdrawal or the net amount after the partial repayment? If it is the net amount, I do not have any tax documents from my retirement account aside from the 1099R for the gross withdrawal. What do I need to do?
I worked from home since COVID. What happens to my taxes?
Today 5:30 AM
Q. In preparation for my tax return, can I apportion my income differently this year. And should I? My business is in New York City but I live in New Jersey. I’ve been working from home since March 2020. I’ve previously paid taxes to New York State and received a credit towards my New Jersey taxes, but because New Jersey’s rate is more than 2% higher than New York, I would still owe money to New Jersey and there could be an underpayment penalty. How should I file?
Can I use a 529 plan to pay for overseas education?
Posted May 05, 2021 Mom
529 plans are a great way to save for college because of the tax-free growth.
Distributions from 529 college savings plans can be used tax-free to pay for qualified expenses if the study program at the foreign institution is eligible for credit at the student’s U.S. home institution, and if the foreign institution is eligible for Title IV federal student aid, said Matthew DeFelice, a certified financial planner with U.S. Financial Services in Fairfield.
In simple terms, your school has to give credit for the study abroad program, and the foreign college where you will be studying abroad must be eligible for financial aid, DeFelice said.
Is a N.Y. pension eligible for the pension exclusion?
Today 5:30 AM
Q. Our total income is less than $100,000 but when I did our tax return, it doesn’t seem the state is allowing me to take the pension exclusion. Is a New York City pension included in the exemption? We file jointly and are in our 70s. Trying to save
A. New Jersey taxpayers can exclude all or part of their income if they meet the certain qualifications.
You are eligible if you, and your spouse if you are filing jointly, are 62 or older or because of a disability, you are eligible for Social Security benefits, and you have $100,000 or less of gross income, said Gerard Papetti, a certified financial planner and certified public accountant with U.S. Financial Services in Fairfield.
Do I qualify for a COVID retirement withdrawal?
Updated 9:30 PM;
Q. I manage a retail establishment and we need to meet a company quota to get a bonus. We did not meet our quota. However, the company gave us 70% of our bonus instead of the 100%. I am assuming COVID affected our sales. I withdrew money from my 401(k) as a COVID distribution and I want to use the funds to pay some of my daughter’s college loan and probably for a down payment on a home. I have no way of proving that. Should I be paying the 10% penalty on my 401(k) because I have no way of proving the bonus was smaller because of COVID?