Orassam
New Member

Why is withdrawal of Roth IRA contributions showing as not taxable for federal but NJ is taxing a portion of it

I withdrew $5000 from my Roth IRA. I have had it open for 10 years and contributed $50000 to it , and it is now valued at over $100,000 (not sure why they asked for today’s value but I entered it). Form 1099 R had a J code, but after filling out my prior contributions, federal is exempting it, but NJ is still adding about $3000 to my income for the year even though it was just a withdrawal of contributions, not earnings. Why is this happening?