Question

nova is retired from a long career working for a company in new jersey. this year, she decided to permanently move from new jersey to texas. the move was completed on april 9th. nova received $25,600 in retirement income prior to her move. she received an additional $50,100 after moving.how much of nova's retirement income is taxable on her new jersey part-year resident return?

Answer 1

Only the retirement income Nova earned while she was a New Jersey resident, $25,600, before her move on April 9th, is taxable on her New Jersey part-year resident return.

Step-by-step explanation:

The question asks how much of Nova's retirement income is taxable on her New Jersey part-year resident return after moving to Texas. Nova earned a total of $75,700 in retirement income for the year, with $25,600 received before the move and $50,100 received after the move. To determine the amount taxable by New Jersey, you would only consider the income earned while she was a resident of New Jersey, which is the $25,600 received before her move on April 9th.

Answer 2

Nova's taxable retirement income on her New Jersey part-year resident return is $6,976.71.

Step-by-step explanation:

Nova's retirement income will be taxable on her New Jersey part-year resident return for the portion of the year she was still a resident of New Jersey.

Since she moved to Texas on April 9th, she was a New Jersey resident for only a fraction of the year. To calculate the taxable retirement income, we need to determine the number of days she was a New Jersey resident and divide it by the total number of days in the year.

There are 365 days in a year, and Nova was a New Jersey resident for 99 days (January 1st to April 9th). Therefore, the fraction of the year she was a New Jersey resident is 99/365.

To calculate the taxable retirement income on her New Jersey part-year resident return, we multiply her total retirement income by the fraction of the year she was a New Jersey resident:

Taxable retirement income = $25,600 x (99/365)

= $6,976.71