Cares Act Covid 19- 401k distribution paying taxes in New Jersey

[Giraldo07]

Hello,

I took a Cares Act Covid Distribution, I elected to pay 1/3 of the amount on my federal last year and at the time of filling my taxes last year while doing my state taxes ( NJ ) I could not do the 1/3 amount so I ended up with the whole amount for my state taxes. 

This year I get to the following screen (see attached)  while working on my state taxes.My issue is that I reported the complete amount on my state taxes last year and this year I am getting this screen. What should I do?

[MaryK4]

You only need to verify the information, then continue.  If it was a Covid distribution and you chose NOT to pay it over three years to New Jersey, select No for the first question.

[Giraldo07]

The second question is what triggers the deduction.

I am assuming then selecting the "Yes, this is nontaxable income for New Jersey" is the way to go, selecting the other option "no" for question 2 triggers a deduction based on the amount that is spread in 3yrs.