I'm a nonresident of NJ (live in Florida last 20 years), but have to file a nonresident tax return due to sale of property in NJ. Here's the issue. When Turbotax transfers the info from the Fed return, it includes withdrawals we made from our IRA. The NJ Nonresident return says to include income from "everywhere" in Column A and then NJ income in Column B. Therefore sale of property plus IRA withdrawal is listed in column A and only sale of property in column B. You then determine percentage of income in NJ and apply that to the tax owed. Here is the problem. TurboTax has a column that you can check next to each IRA withdrawal if "non taxable in NJ". Since I live in FL and I heard there was a law that says another state (NJ) can't tax a person's IRA withdrawals (or pension) when you are not a resident, should I check the box or not? Not checking the box and even listing "0" in Column B for IRA withdrawals, you get a higher tax then if you checked the box and it doesn't appear in Column A.
