Michael,
New Jersey is notorious for taxing anything that moves or breathes!!! However, in your case I believe NJ can't tax the contribution portion of a TSP withdrawal because that contribution was made from Maryland earned income. (Maryland probably took state income taxes from those contributions.)
Now, New Jersey will be the first in line to collect state income taxes on your TSP withdrawal for the growth portion. So how do you know which part of your withdrawal is a contribution (NJ-tax free) and which portion is growth (NJ-taxable) ??? That's where Turbo Tax will guide you through process. Good luck!
