NJ Difficulty of Care

Hi - wondering how TT Premier handles this.  I have a W-2 for $0, and Box 12a I have code II for say $1000 (Medicaid Waiver).  The NJ section has income in Box 16, yet TT is counting this as income for NJ.  (Federal isn't a problem).  How do I fix this in TT?  There was actually a little bit of tax withheld in box 17 so I'd like to file and get that back since it was withheld in error.

 

Note this:  https://www.nj.gov/treasury/taxation/individuals/clarification-carepayments.shtml#:~:text=NJ%20Taxat....