Deductions & credits

Thank you ! @dmertz  How do I report this 6,043 in TurboTax online and make only $43 taxable on both Federal and NJ state tax returns. I can't find a way to do it in Turbotax online and entire 6,043 shows as NJ taxable and Federal returns shows 0 as taxable

 

Also I don't see form 5329 getting generated in my preview on Turbotax online. Please assist