you have 60 days from receipt to roll over $7,900 into an IRA
after that it is too late.
The box 4 withholding goes to the IRS.
depending on other factors, you should be eligible for a deductible IRA contribution of most of that money and that will be similar effect as a rollover.
You report $7,900 on the state return for the state you were in when you got the money
@leeleses
