Brick Taxes llc
Tax Preparation for Seniors and Retirees in NJ

Tax Preparation for Seniors and Retirees in NJ

Social Security and pension statements, a calculator, reading glasses, and coffee arranged on a dark grid surface

This service page explains what retirement tax preparation involves for older and retired New Jersey taxpayers. It covers what to gather, what Brick Taxes LLC handles, and how federal and New Jersey rules may affect your return.

Brick Taxes LLC | 732-540-1040 Office: 88 Queen Ann Rd, Brick, NJ 08723

Who this is for

Our tax preparation services for retirees are for:

A family member may be authorized to help with tax matters, but the taxpayer’s consent or proper authorization may be needed before private information can be discussed.

What is different about tax preparation for seniors and retirees

A standard household return may center on one or two Forms W-2. A retiree’s income can arrive through Social Security, pensions, annuities, IRA or 401(k) distributions, investment accounts, and part-time work, with each source reported differently.

Social Security is not automatically tax-free or fully taxable for federal purposes. The taxable portion is determined by a formula, while New Jersey does not tax Social Security benefits. IRS Publication 915

Retirement accounts may also have required minimum distribution (RMD) deadlines. Missing an RMD can trigger an excise tax, while Medicare Part B and Part D premiums may change based on income from an earlier tax year. IRS RMD FAQs

New Jersey calculates retirement income under its own rules, so the state return may not treat a pension, annuity, or IRA withdrawal the same way as the federal return. New Jersey Division of Taxation

What we need from you

Please gather the following documents and information:

For the full checklist, see What to Bring: Documents Needed. You can also explore all Brick Taxes LLC services.

Abstract tiered chart illustrating an income eligibility test and a clear cutoff point

What Brick Taxes LLC handles

Brick Taxes LLC reviews the documents you provide and handles the return preparation process, including:

How Social Security is taxed

For federal income tax purposes, up to 85% of Social Security benefits may be taxable, depending on your other income and filing status. The calculation uses “combined income”: adjusted gross income, plus nontaxable interest, plus one-half of your Social Security benefits. IRS Publication 915

New Jersey does not tax Social Security benefits. New Jersey Form NJ-1040 Instructions

Pensions, annuities, and required minimum distributions

Pension, annuity, and retirement-plan distributions are generally taxable federally to the extent the money was not previously taxed. Some pension or annuity payments may include a tax-free recovery of contributions made with after-tax money, calculated under applicable federal rules. IRS Publication 575 IRS Publication 590-B

Most traditional IRAs, SEP IRAs, SIMPLE IRAs, and retirement plans require RMDs. The required beginning age is generally 73; it rises to 75 for people born in 1960 or later. The first RMD may generally be delayed until April 1 of the following year, but doing so can mean taking two RMDs in that year. A missed RMD may be subject to an excise tax, although relief may be available in some circumstances. IRS RMD FAQs

A year-end account balance does not show whether you met the distribution requirement. RMDs have to be calculated and taken according to the rules for the specific account. IRS Publication 590-B

Layered retirement income sources converging into one organized tax return

The New Jersey retirement income exclusion

This is often one of the most important New Jersey tax questions for retirees. To qualify for the pension exclusion, you or your spouse or civil union partner filing jointly must generally be age 62 or older, or disabled under Social Security guidelines, by the last day of the tax year. Total income must be $150,000 or less. New Jersey Division of Taxation

If total income is $100,000 or less, the maximum exclusion is:

The actual exclusion cannot exceed eligible taxable retirement income. Above $100,000 of total income, the exclusion is calculated as a percentage of taxable pension, annuity, and IRA income, with the percentage depending on income and filing status. At $150,001 of total income, the exclusion is no longer available. New Jersey Division of Taxation 2025 NJ-1040 Instructions

The exclusion may apply to pensions, annuities, and IRA withdrawals. It does not exclude wages, business income, or rental income as retirement income. Eligibility and the amount depend on the full return, filing status, and applicable year’s instructions. New Jersey Division of Taxation

New Jersey benefits worth checking

Some New Jersey benefits are separate applications, not part of the income tax return. Eligibility rules and filing requirements apply, and benefit amounts are not guaranteed.

These programs usually require separate applications or renewals; filing an income tax return alone does not apply for them.

Medicare and income

Medicare Part B and Part D premiums can be higher when modified adjusted gross income exceeds the applicable thresholds. Medicare generally uses tax information from two years earlier to determine income-related adjustments, so a change in income may affect premiums later. Premiums for Medicare Part B and Part D may also qualify as medical expenses for federal itemized deduction purposes, subject to the applicable rules. IRS Publication 502

This is a planning point, not something a tax return filing can change retroactively.

Serving Brick, Ocean County, and all of New Jersey

Brick Taxes LLC serves taxpayers in Brick Township, Point Pleasant, Point Pleasant Beach, Manasquan, Wall Township, Howell, Lakewood, Toms River, Jackson, and Beachwood. Remote service is available across New Jersey and out of state.

For questions about retirement tax preparation, call 732-540-1040. Brick Taxes LLC can explain the preparation process and help you understand what information is needed for your return.

Frequently asked questions

Do I need to file a return if Social Security is my only income? It depends on your full tax situation and filing requirements. Social Security may not be taxable, but other circumstances can still affect whether you need to file. IRS Publication 915

Does New Jersey tax my Social Security benefits? No. New Jersey does not tax Social Security benefits. New Jersey Form NJ-1040 Instructions

Can I qualify for New Jersey’s retirement income exclusion if I still work part time? Possibly, but wages count toward total income and are not themselves excluded as retirement income. Eligibility and the exclusion amount depend on the full return and applicable New Jersey rules. New Jersey Division of Taxation

What if I forgot to take an RMD? A shortfall may be subject to an excise tax, and relief may be available if the error meets the requirements. The account owner should address the missed distribution and reporting promptly. IRS RMD FAQs

Can my adult child help with my tax preparation? Yes. A family member may help gather documents and participate in discussions, but authorization may be needed before Brick Taxes LLC can share confidential tax information with them.

Next steps

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Brick Taxes LLC is not a financial consulting firm and does not provide financial or investment advice; this content is a technical illustration only; readers should consult their own financial advisor; there is no referral arrangement and Brick Taxes LLC receives nothing for saying so.

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Brick Taxes LLC | 732-540-1040