Expands eligibility for pension and retirement income exclusion to taxpayers with incomes exceeding $150,000, and increases amount of exclusion that qualifying taxpayers may claim.

S 2568 would expand New Jersey's pension and retirement income tax exclusion to include taxpayers with incomes above $150,000. Currently, the exclusion applies only to taxpayers with $150,000 or less in gross income. The bill increases the exclusion amount by allowing taxpayers to exclude the first $150,000 of pension payments plus 50% of payments between $150,000 and $300,000. This change would benefit older residents (62 or older) or those with disabilities who receive retirement income but have higher incomes than the current threshold. The exclusion would apply to those eligible for Social Security disability benefits or aged 62 or older.