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

The $25,600 of retirement income Nova received while a resident of New Jersey is taxable by New Jersey. The additional $50,100 received after moving to Texas, where there is no state income tax, is not taxable by New Jersey.

Step-by-step explanation:

The student's question pertains to the amount of retirement income that is taxable on Nova's part-year resident tax return in New Jersey after relocating to Texas. According to New Jersey tax laws, income you receive when you are a resident, even if earned prior to moving, is typically subject to state income tax. Therefore, the $25,600 in retirement income Nova received while still a resident of New Jersey is taxable by New Jersey. The additional $50,100 received after the move when she became a Texas resident would not be taxable by New Jersey, as Texas does not have state income tax and since she was no longer a resident of New Jersey.

Answer 2

Nova is subject to New Jersey state income tax for the $25,600 of retirement income she received prior to moving to Texas. The additional $50,100 received after the move is not taxable by New Jersey.

Step-by-step explanation:

The student asked how much of Nova's retirement income is taxable on her New Jersey part-year resident return. Since Nova moved to Texas from New Jersey during the year, she is only subject to New Jersey state income tax on the income she received while she was still a resident of New Jersey.

The retirement income Nova received prior to her move amounts to $25,600 and is taxable in New Jersey because she was a resident at the time it was received. The additional $50,100 received after moving to Texas is not taxable by New Jersey since she was no longer a resident of the state at the time it was received.

Therefore, $25,600 of Nova's retirement income is taxable on her New Jersey part-year resident return.