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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15430
Experience:  15years with H & R Block. Divisional leader, Instructor
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My wife has a 403b. Pretax deductions were taken for Federal

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My wife has a 403b. Pretax deductions were taken for Federal taxation but not NJ.
Met Life said it's a qualified account and you pay taxes on the entire amount for both
Federal & State taxation purposes. I say for NJ you should only pay taxes on the Interest,
however, I do not know how to acomplish this. We do know how much she contributed
to each Account.

Robin D :

Hello and thank you for using Just Answer.

Robin D :

The New Jersey Gross Income Tax Act, unlike the Internal Revenue Code of 1986, does not have a provision deferring the tax on contributions made by an employer or employee to a §403(b) plan. As such these contributions are taxable in the year made and are subject to withholding like any other wage or remuneration paid an employee.
The employee should report these contributions reflected on the W-2 received as wages, in the year(s) made on their Gross Income Tax return(s), calculate their tax accordingly and claim any withholdings listed on the W-2. Any distributions the employee receives from the §403(b) should be adjusted/reduced for the contributions already reported and taxed for Gross Income Tax purposes.
You need to look at the NJ publication on pensions
It expalins how to show the already taxed portion on your return for NJ.

Robin D :

Look at the section for contributory plans.

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