The total tuition and books was $6161.46. The scholarship was $1250 and the 529 withdrawal was $4800 ($1695.92 basis and $3104.08 earnings). Turbotax calculated for federal the best return is $2515 as taxable income (other income on schedule 1) and $4000 towards AOC. Turbotax applies the $2515 to the New Jersey return as interest. If I apply the $2515 as taxable with federal do I have to apply the $2515 as taxable interest for New Jersey? If not then New Jersey will not be taxed for the $2515. Thank you for your assistance.
