Turbotax 2024 (and 2023) is populating NJ line 20b with 1099-R non-IRA rollover amounts (distribution code G) that are found on the Federal tax return (line 5a minus line 5b). NJ line 20b is for excludable pension, annuity, and IRA distributions/withdrawals, i.e., previously taxed contributions, not for rollovers. Per NJ GIT 1 & 2: "Do not report on your State return an lump-sum distribution you roll over to a traditional IRA, or other eligible plan if the rollover qualifies for deferral under federal income tax law. The amount rolled over (minus previously taxed amounts) is taxable later when it is withdrawn."
The Turbotax helpline agent suggested I manually remove the amount posted on NJ line 20b. That is not the answer. It would seem there is a Turbotax programming error that needs to be fixed.
