2012 Income Tax FAQ - 336

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Why do I have to enter all this IRA information for New Jersey?

Since New Jersey does not allow IRA deductions, when you make IRA withdrawals you are only taxed on the portion of the withdrawal that is considered earnings. The portion of the deduction that represents your original contribution is non-taxable.

Ensure Accuracy and Save Time

After you finish your federal tax return, your information will accurately and automatically transfer into your state return. Just answer a few state specific questions, and you're done.

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