Hello MarilynG1,
Thanks for your input. It does appear to be a problem with TurboTax. I also did some tests - removed and re-entered medical expenses in Federal interview, removed all amounts altogether, entered different made up amounts, and all scenarios using different amounts yielded the exact same (incorrect) amount of $3732 in NJ!
It might be that your own test worked because your case actually uses the itemized deduction while my return uses the standard and doesn't even create a Schedule A.
At this point, I don't think I'll even bother reporting this issue to TT support. I think I will proceed with the workaround previously suggested to override the incorrect amount in the NJ interview page. Maybe after filing my returns, I may contact support so that next year's edition will be free of this issue.
Thanks very much to all who helped!
