Q. Do my spouse and I qualify for the pension exclusion? We are both over age 62, and last year we earned: $75,000 from IRA/401(k) distributions, $25,000 from a Roth IRA distribution, $64,000 in Social Security, $30,000 in capital gains from a brokerage account and $10,000 from dividends and interest. — Retired A. Nope. you don't qualify for the pension exclusion. That’s because you have too much income. To qualify for the pension exclusion, you must have less than $100,000 o

Q. I filed my father’s taxes and they only allowed me to exclude his $39,600 pension. In reading the pension exclusion rules further, it seems that you are allowed to exclude the lesser of your pension or $45,000 of retirement income? It seems a little unfair to those who are making less – he had to still pay taxes on $8,000 of income. Is this the correct interpretation of the law? — Trying to help A. New Jersey has two income exclusions for senior citizens when they file the