Backdoor ROTH IRA conversion treatment for NJ taxes?

[NJ_Devils]

I maxed out my traditional IRA (all non-deductible) last year and converted it to Roth IRA in a few days.

For Federal, the treatment is simple enough - just the earnings (few $s) for a few days in the IRA account was taxable but I wasn't sure about NJ.

The tax software is asking me about all my prior contributions and withdrawals and somehow comes up with a taxable portion of the IRA distribution that is LARGER than the entire amount of gains (approx $300 vs <$10 for actual untaxed earnings) the IRA account had in a few days.

It doesn't seem to make a ton of sense to me, since the contribution money was non-deductible and already taxed before. The IRA account had zero balance at the start of the year so there is no balance or basis from before 2023 (though the account had money previously and was rolled over to Roth in 2022).

Can I just override the software and just use the gains as the taxable piece of the IRA distribution (only a few $s)? or am I missing something?

[fanfare]

" all my prior contributions and withdrawals"

Try entering relevant amounts only for the current year.

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The rules for NJ are different based on whether you have paid NJ tax on your IRA previously or this is the first time.

The TurboTax questions may be confusing. the calculation may depend on answers you entered in prior tax years (tax history).

@NJ_Devils