same problem here. Covid related distribution can be spread on federal, but not on NJ tax return. The so-called "solution" on this site is not a solution. It is an incorrect statement, claiming NJ does not allow three year spread. NJ does allow that see https://www.nj.gov/treasury/taxation/covidpension.shtml. It says "You can report income over three years or in one year (the year of distribution)". Its just TurboTax Deluxe doesn't want to do that. If there is some roundabout way, I'd very much would like to know it. Otherwise this is software fault that would cause many NJ residents to overpay thousands of dollars to the state.