LIVINGSTON, NJ — Michael H. Karu, CPA/CFF, senior member of the Livingston-based accounting firm Levine, Jacobs & Company, LLC, was highlighted on NJMoneyHelp.com, where he answered the following question:
“My husband and I moved from New Jersey to Massachusetts two years ago. He has been receiving a retired police pension from the New Jersey Division of Pensions and Benefits since 2004. Would his pension be taxed in New Jersey or Massachusetts?”
Karu emphasized that only the state in which a person lives will tax the pension due to residency. In this case, it would be Massachusetts instead of New Jersey.
“You pay tax on the pension, regardless of which state it originated, to the state in which you live,” said Karu. “For pensions and other retirement income received on or after Jan. 1, 1996, federal law prohibits any state from taxing pension income unless you are a resident of that state.
“But if you moved back to New Jersey, depending on your age and income level, the pension could be tax-free. That’s because New Jersey now has a pension exclusion. If you’re 62 and older and your total income is less than $100,000, you won’t owe income taxes to the state."
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Karu is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is a certified Divorce Mediator and is certified in Financial Forensics.
He is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
To schedule a meeting with Karu, contact Amy Delman of Amy Delman Public Relations, LLC, 201.563.4614 or firstname.lastname@example.org.