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At what point does New Jersey tax a traditional IRA?
I'm filing my taxes with the state of NJ and have withdrawn a large portion of money from a traditional inherited IRA for the year 2021. I had Charles Schwab hold a percentage of NJ taxes for the year as I expected to pay state tax on the withdrawals, yet Turbotax says I'm getting all of that money back in a refund and just owe more federal. When I looked up state law on taxes it says:
"Contributions to an IRA are subject to New Jersey Income Tax in the year they are made. When you make a withdrawal from an IRA, the amount you contributed is not taxable, since the contributions were already taxed."
Does this mean the taxes were already paid when the money was put into the IRA? (I can't ask the person who made the contributions because they're no longer living).
I just want to confirm with someone who may know better than I as no one, including my financial advisor, has provided this information.