What NJ adjustment do I need to make for compensation for injuries or sickness?

Certain amounts received for personal injuries or sickness are not taxable. Don't include these amounts as wages on your return if all of the following are true:

  1. The payments were compensation for wage loss that resulted from absence due to your injury or sickness.
  2. The payments were due and payable under an enforceable contractual obligation under the plan.
  3. The payments were not related to sick leave wage continuation.

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