More seniors to qualify for tax deductions under Stanfield, Peters bill

LUMBERTON – Assemblywoman Jean Stanfield and Assemblyman Ryan Peters introduced legislation that aims to make New Jersey more affordable for seniors and people with disabilities.

The 8th District legislators’ bill, A3330, would raise the income eligibility threshold for excluding pension and retirement income from overall taxable income.

“It’s no secret that there’s an affordability crisis in New Jersey that crushes the chances of many seniors who want to stay in this state and be close to their families, Stanfield said. “We need to come up with solutions to the mass exodus of seniors to southern states, and that starts with making retirement more affordable.”

Currently, taxpayers or joint filers with $100,000 or less in annual income and who are at least 62 years old or disabled may exclude certain pension and retirement income from their state taxes. Stanfield and Peters’ legislation would up the threshold to $125,000.

Under the law, households with total income even $1 above the $100,000 threshold are ineligible to deduct any retirement or pension income. The current income threshold has not risen since 2005. The new $125,000 threshold would allow more New Jersey residents to lower their tax burden.

“The law, as it stands, creates a $100,000 financial cliff that many middle-class families fall off of. The current income threshold does not reflect how truly expensive it is for retired families to live in New Jersey in 2020. By raising the limit for the first time in 15 years, taxes will go down for many, many seniors,” Peters said.

The bill was introduced in the Assembly Financial Institutions and Insurance Committee.