Generally, your employer will add deferred compensation to New Jersey wages if your W-2 has a NJ wage line in Boxes 15-20.
What commonly happens is that you only have state wages and withholding for your work state so there is no NJ wage line, and since the rules are different in other states, you need an add back.
Add your salary deferral (other than 401(k) which NJ allows) to the screen "Other Wage Adjustments – W-2."
Your $7,000 IRA contribution is outside of your W-2. You don’t need an adjustment. TurboTax will not transfer this deduction from federal to state.
Do keep track of your nondeductible contributions. Part of your IRA withdrawals will be tax-free for NJ when you start taking money out.
TurboTax does not track this.
Most people end up overpaying NJ because they have no records of contributions so they report their whole contribution as taxable to the state.
@hyoonx
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