Get your taxes done using TurboTax

I have tested this workaround in TurboTax Desktop and have been successful at getting the reduction to carry over to New Jersey.  The steps are:

1. Click Forms on the Right upper corner
2. Click on Form 1099-K Wks
3. Scroll down to reconciliation, under 2b enter the amount of the payments for personal property sold at a loss
4. Line 3 should change to the difference between amount sold and the payments
5. Go back to Step-by-Step in the right hand corner
6. Click Personal Income
7. Scroll down to Less Common Income, and click Update next to Miscellaneous Income, 1099-A, 1099-C
8. Make sure to remove the negative adjustment there
9. Review NJ return to make sure the adjustment occurred.

@herdowl51