Why does it say it has a paper jam when it doesnt?

This is probably a sensor/sensor flag problem. The printer declares a paper jam if the paper moves too slowly through the printer, if the paper does not pick up or if a sensor is stuck in triggered mode. The first 2 causes can be fixed by cleaning the paper pick up rollers and transport rollers with a lint free cloth dampened with alcohol (rubbing alcohol will work but 90% works best).

The third cause can be a sensor flag stuck in the wrong position, or knocked off its pivots. This happens if an actual paper jam is removed in the opposite direction of the travel from paper tray to out put tray. The sensor flag is a thin piece of plastic that pivots when paper passes over it, it can be designed to go to home position by a counter weight on the flag to pull it to home position or there can be a spring to pull or push it into home position. Check the flags and see if they move freely and move back to its home position. The sensors are usually optical and part of the flag either breaks the light beam or allows the light beam to pass to the other side. Sometimes there is enough paper dust to obstruct the light path, in this case use canned air to gently blow out the dust. The flags are delicate and easy to break.