Does anyone know if New Jersey allows capital loss carryback? Didn't find it mentioned anywhere.

No. New Jersey (NJ) does not allow any carryback for capital losses.  The following information describes their rules for income tax and losses.

• Reporting Losses. If you have a net loss in any category of income, remember the following:

1. You cannot report a loss on your NJ-1040 (e.g., in parentheses or as a negative number);
2. You can net losses with gains in the same category of income. For example, you can subtract gambling losses from gambling winnings during the tax year;
3. You cannot apply a net loss in one category of income against income or gains in a different category on your NJ-1040. For example, you cannot subtract gambling losses from your wages;
4. If you have a net loss in any income category, make no entry on that line of your NJ-1040. Do not enter zero. Do not enter the amount of the loss in parentheses or as a negative number;
5. No carryback or carryover of losses is allowed when reporting income on your NJ-1040