""IRA Contributions Previously Taxed" means shown and taxed on prior NJ tax returns, so your statement is incorrect."
Actually it is not. It is asking me if my contributions were previously taxed. Since this is a Roth IRA they were. More information is available when clicking on "Contributions previously taxed"
- Contributions previously taxed include:
- Contributions made to an IRA while you were a resident of New Jersey
- Contributions that did not reduce the income on your federal return in the year they were made
- Contributions that did not reduce state income in another state
Since this was a RothIRA these contributions did not reduce the income like contributing to a Traditional IRA would. If I set "Total of IRA Contributions Previously Taxed" to $0 then it actually increases this magical "Pension Income" to the full contribution/distribution amount. TurboTax is literally taxing me on unrealized gains hence why it's asking the value of my IRAs. If I set the current value of my IRAs to $0 all of this pension income goes away and the refund increases to the correct amount.
