TurboTax will figure out how much is taxable in NJ after you entered how much was previously taxed by NJ. Your traditional IRA contributions are not deductible in NJ. Therefore, if you only made contributions while living in NJ then all of your contributions will have been previously taxed.
Please go through the NJ state interview until you get the "Roth Conversion screen" and enter the amount of contributions that were previously taxed in NJ (click on the Learn More link if you need help figuring out the amount).
"In most cases, your contributions to a traditional IRA were already taxed by New Jersey and are not taxable when withdrawn. However, any amounts you roll over from a traditional IRA to a Roth IRA that were not previously taxed by New Jersey must be included as income on your New Jersey return the year they are withdrawn from the traditional IRA." (NJ Division of Taxation)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
