Updated October 24, 2026. Quick answer: This guide walks the lines of the New Jersey NJ-1040 resident return that a retiree most often reads: the income lines, the two retirement exclusions on lines 28a and 28b, the deductions and the property tax lines. Each line has its own page that quotes the New Jersey Division of Taxation’s 2025 instructions for it.
The lines covered
Pick the line you are stuck on. Each page quotes the 2025 instructions for that line, says who it applies to and shows where the result goes next.
| Line | Page | Where it sits |
|---|---|---|
| Line 7 | Senior 65+ exemption | the exemption block |
| Line 15 | Wages, salaries and tips | income |
| Line 17 | Dividends | income |
| Line 19 | Net gains or income from property | income |
| Line 20a | Taxable pension, annuity and IRA withdrawals | retirement income |
| Line 20b | Excludable pension, annuity and IRA | retirement income |
| Line 26 | Other income | income |
| Line 27 | Total income | income |
| Line 28a | Pension and retirement exclusion | retirement exclusions |
| Line 28b | Other retirement income exclusion | retirement exclusions |
| Line 29 | New Jersey gross income | the bridge to deductions |
| Line 31 | Medical expenses | deductions |
| Line 41 | Property tax deduction | deductions |
| Line 44 | Credit for taxes paid to other jurisdictions | credits |
| Line 56 | Property tax credit | payments and credits |
How the income lines connect
The booklet’s instruction for the total reads “Add lines 15 through 26 (do not include lines 16b and 20b) and enter the total.” The pension and retirement exclusions then come off that total, and the booklet’s instruction for the result reads “Subtract line 28c from line 27 and enter the result.”
For the state-level picture of how New Jersey treats retirement income, see New Jersey retirement taxes and whether New Jersey taxes pensions.
Edition and line numbers
These pages read 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.
Related: New Jersey 401(k) and IRA withdrawals, Form 1040 line 5a and 5b, and Form 1040 line 4a and 4b.
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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.