NJ has deductions for college related items. The 1098-T means you need the in-state tuition NJ deduction. A deduction of up to $10,000 for tuition paid to a NJ institution of higher education (subject to income limits, generally for taxpayers with gross income of $200,000 or less). Follow these steps:
- start/continue the New Jersey return.
- continue through and look for New Jersey College Affordability Deductions
- Select Yes
- continue past NJBEST
- continue past NJCLASS
- Enter up to $10,000 of tuition costs
- continue
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