Where on the NJ State Return do you adjust for a withdrawal due to an excess contribution to a traditional IRA that was returned in the same year?

Currently Line 19a is reporting this as taxable.  The withdrawal is not taxed on the federal return.  See details.

I made an excess contribution of $6500 to a traditional Rollover IRA in 2017.  The excess amount was returned in 2017, but only $6414, resulting in a $86 loss.  The 1099 R - Box 1 = $6414 and Box 7 = "8".  Although the Federal 1040 does not tax me on the $6414, the NJ 1040 is treating it as a withdrawal and taxing me on it.  

Two questions:

1. Does NJ tax you on the return of excess contributions.  The Fed does not.
2. What adjustment do I need to make in either the NJ 1040 or Fed 1040 to avoid being taxed on the NJ 1040?