State tax filing
No, you are not misinterpreting the New Jersey site. The link referenced above is a general article and not directly related to New Jersey. Each state has its own set of rules and taxation varies.
In TurboTax, you would need to go through the state interview section to make any adjustments as it relates to New Jersey. Proceed through the screens until you see the screen titled "any sales of property not subject to New Jersey tax?" Select yes.
Then, on the next screen titled "Disposition of Property," you will be able to select the box to omit any income that is not taxable in New Jersey.
