Being taxed on post-tax contribution to Roth IRA
Hi,
In March 2024, by mistake, I contributed $6500 from my bank account (post-tax money) to my Roth IRA. That money was $6713 in Nov 2024, which I moved to my brokerage account. I got a 1099-R indicating $213 as taxable income, on which TurboTax calculated a federal tax of $21. This was my first year of making this mistake and moving the money out from the Roth account. I am also planning to make a contribution of $7000 for backdoor Roth conversion for 2024. Now when I'm doing my New Jersey taxes, this is how I answered the following questions under "IRA Information"
1. Tell us if this was the first withdrawal from this IRA? Yes
2. total of all IRA previously taxed: $6500
3. Value of all IRS on 12/31/2024: $42,068 (the value of my traditional IRA on Dec 31 2024)
4. IRA Contributions made for 2024 between 1/1/2025 and 4/15/2025: 7000
But in the next screen, it lists an amount of $5932 for New Jersey taxable pension. I believe TurboTax is taxing me on the $6500 and not $213. In the forms at least $5932 as taxable pension and $781 as excluded pension (sum is $6713). Can anyone pls tell me how do I make $213 as my taxable income (and not 6500) from this entire contribution? Do I need to change anything manually?
Moreover, increasing the amount in all IRA (traditional IRA) also increases the NJ taxes which it should not.
Thank you so much!
