" then entered my total of "IRA Contributions Previously Taxed" which is equal to the distribution on the 1099-R"
"IRA Contributions Previously Taxed" means shown and taxed on prior NJ tax returns, so your statement is incorrect.
Since this is your first distribution, the previously taxed amount is (usually) zero.
In future, you won't get that question again after the first NJ distribution, the worksheet doesn't call for it.
