Solved
This is for the NJ state return - fed is OK.
Thanks. Turns out - there is a checkbox that needs to be filled in for the NJ-CBT-1065. Unfortunately, the form TurboTax brings up is not the one that needs to be fixed. It is actually on a different form. Took one of their tax experts a while to find it but he stayed with it and, eventually, identified the correct form to fix.
I appreciate Dan's effort - he was just as confused about what was wrong as I was and had to ask a third person who pointed us in the right direction.
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