If you have a 2024 1099-R that you entered into your 2024 return (because of withholding), TurboTax may tell you to Amend your 2023 return.
If you didn't report the excess/withdrawal in 2023, you will need to Amend to enter your 1099-R with Codes JP. If you indicate that you withdrew the excess contribution in the follow-up questions, you are correct that you should be taxed only on the Earnings in both Federal and State on your 2023 Amended Return.
On what NJ form are you seeing the contribution also being taxed in NJ?
If you can give more info, we'll try to help.
Here's more discussion on Entering 1099-R With Codes JP.
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