My wife and I have a total of 4 IRAs. One is an Inherited IRA in which I need to take an RDM each year. For my personal IRA I have been converting into a Roth IRA for the past 4 years staying below the dollar amount previously taxed. I have only had to pay NJ tax on the inherited IRA. For 2023, I start to pull money from my SEP IRA to convert into my Roth IRA for the first time. Turbo tax is asking me in the NJ portion of the tax return. The screen says: Tell us if this is the first withdrawal from this IRA. I checked the Yes button. It then wants to know Total of IRA (Contributions Previously Taxed) as a hyperlink.
First couple questions is: is Turbo Tax asking for just the total of the SEP IRA and/or the contributions previously taxed
Then on the same screen it is asking for : Value of all IRA's on 12/31/23
I have provided the information, as I understand it. Turbo Tax is calculating I owe NJ tax on my withdrawal. This should not happen; as this is the first time for the SEP IRA. The amount I withdrew is fractional to the amount previous tax amount during my contributions to the SEP IRA
Please explain or guide me to instructions and explanations.
