I have been reflecting the already-taxed contributions to an inherited IRA for many years, but this is the first year that I am also taking distributions from my own traditional IRA - my contributions to that IRA should also be exempt from NJ state tax, but there seems to be no way to reflect both sets of contributions in turbo tax. HELP
For anyone else in NJ with both an inherited traditional IRA and your own (non-inherited) traditional IRA - you will have to do a workaround (if you have desktop for Mac - dk whether this is a problem for Windows users or online users....):
Spent about an hour on the phone with TT help. In the worksheet for NJ (pensions, etc) we had to treat this as the first year distribution (even though I'd been taking distributions from the inherited IRA for many years - and the software was importing the numbers from the previous years' returns) - combined the carryover exempt basis from the inherited IRA with the "new" basis from my own IRAs (the contributions on which I had already paid NJ taxes). I had to zero out the numbers that were carried forward from last year's return. I know this sounds complicated, and TT really needs to clean up the program to handle this properly. Curious if anyone else found a way to make this work??