BCAR
not a TurboTax expert by any means, but when I followed the guidance in this thread all my Federal and State forms were updated correctly and seemed to account for the excess contribution I had. I double checked my states and they pull in the correct numbers from the Fed filing. I would not really be able to give you sound advice on why NJ state is not taking this into consideration. Maybe somewhere along the line you have to drop this gain on excess as income to be taxed for the NJ state to account for it. Sorry can't be of much more help.
