State tax filing

Hi yes, she's my dependent.  I entered my 529 info in turbo tax federal section together with her college info 1098-T.  Her college was paid via the 529.  Now when that's done, i went on to work on my NJ in turbo tax.  There's a question in NJ forms asking if you have college expenses of which can be used as a deduction up to 10K.  I did that and it increased my refund.   So the question is, is that 'double-dipping' ?  if not, how come Turbotax did not pick up that 529 info when filing the NJ forms?  also, if it's double-dipping, how come Turbotax did not flag it as such?  Thank you.