Updated October 24, 2026. Quick answer: Line 28b of the 2025 NJ-1040 is the other retirement income exclusion, open to people who were 62 or older on the last day of the tax year. It has two parts: an unclaimed portion of the line 28a exclusion, worked out on Worksheet D, and a Special Exclusion for people whose employer did not take part in Social Security or Railroad Retirement. Part-year residents use Worksheet E.
What this line asks
The form labels line 28b as the other retirement income exclusion and points you to Worksheet D and the instructions. The booklet’s opening sentence is “If you were 62 or older on the last day of the tax year, you may be able to use the other retirement income exclusion.” It is the second of two exclusions; the first is NJ-1040 line 28a.
Who it applies to
The booklet states the age condition above and a rule for joint returns: “If you are filing jointly and only one spouse is 62 or older, only the income of that spouse can be excluded.” “You cannot exclude the income of the spouse who is younger than 62.”
For the Special Exclusion the booklet describes a narrower group: “If you (and your spouse if filing jointly) will never be able to receive Social Security or Railroad Retirement benefits because your employer did not participate in either program” the booklet says you may qualify.
What the instructions say to enter
| Step | What the booklet says |
|---|---|
| Age test | “If you were 62 or older on the last day of the tax year, you may be able to use the other retirement income exclusion.” |
| Joint filers | “If you are filing jointly and only one spouse is 62 or older, only the income of that spouse can be excluded.” |
| Unclaimed Exclusion | “If you did not use your entire maximum exclusion on line 28a, you may be able to use the unclaimed portion.” |
| Worksheet D | “Complete Worksheet D to determine whether you have any exclusion remaining and meet the eligibility requirements” “and, if so, to calculate the amount to include on line 28b.” |
| Part-year residents | “Part-year residents do not complete Worksheet D.” “Instead, use Worksheet E.” |
| Special Exclusion | “you may qualify for the Special Exclusion.” |
| Special Exclusion note | “Do not claim the Special Exclusion if you (or your spouse if filing jointly) will ever be eligible for Social Security or Railroad Retirement benefits.” |
The booklet points to more reading: “For more information, see GIT-1 & 2, Retirement Income.”
The figures the line prints
The Special Exclusion amounts sit in one running sentence: “you can claim $6,000 (married, filing joint; head of household; qualifying widow(er)) or $3,000 (single; married, filing separate).” The sentence names the filing statuses that go with each figure. The booklet prints Worksheet D after the line instructions, and this page reads only its one-sentence steps, not any column of figures.
Where the result goes next
Line 28b feeds the exclusion total. The booklet’s instruction for that total reads “Add lines 28a and 28b and enter the total.” See NJ-1040 line 27 and NJ-1040 line 28a, and for the state view New Jersey retirement taxes and whether New Jersey taxes pensions.
Part-year residents
The booklet prints a part-year paragraph for this line: “If you did not use your entire prorated maximum exclusion on line 28a, you may be able to use the unclaimed portion.” “Complete Worksheet E to determine whether you have any exclusion remaining and meet the eligibility requirements” and the amount to include on line 28b is calculated there.
Edition and line numbers
This page reads the 2025 NJ-1040 New Jersey Resident Return booklet, the current file the New Jersey Division of Taxation served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Claiming the Special Exclusion when Social Security or Railroad Retirement benefits are possible later. The booklet says “Do not claim the Special Exclusion if you (or your spouse if filing jointly) will ever be eligible for Social Security or Railroad Retirement benefits.”
- Excluding income of a younger spouse on a joint return. The booklet says “You cannot exclude the income of the spouse who is younger than 62.”
- Using Worksheet D as a part-year resident. The booklet says “Part-year residents do not complete Worksheet D.”
Related: New Jersey retirement taxes, whether New Jersey taxes pensions, New Jersey and Social Security, New Jersey 401(k) and IRA withdrawals, and NJ-1040 pension exclusion lines 20a to 28c.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement tax planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with pension and IRA taxes
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 NJ-1040 New Jersey Resident Return booklet (instructions and forms), New Jersey Division of Taxation: www.nj.gov
- 2025 Form NJ-1040 New Jersey Resident Income Tax Return, New Jersey Division of Taxation: www.nj.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.