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Yes, you can file the federal return and not the state.  You can choose not to prepare a state return or delete it if you already started it.  In the File section, you can also select to file just your federal return.  To do this:   Go to the "File" tab in your TurboTax Proceed through the prompts Make sure you only select the federal return for e-filing You can also:   Select "Delete" next to your state return If you decide to file your state return later, you can always go back to your return and file it.     How do I e-file my state after I already filed my federal?

The math is $4,000 must be paid by the parent towards tuition not by scholarships. If the scholarship is allowed to be used for living expenses, then it can be applied to room and board along with tuition.   In your head, think box 1 must have $4k I paid. Box 5 is $xx. Then box 5 $XX  can pay the amount over your $4k in box 1 and the rest is income to the student.   For example: $15,000 box 1    $25,000 box 5 Need $4k you paid in box 1 this leaves $11k covered by scholarship.  $4k + $11k = box 1 $15k All scholarship money over that amount is taxable income to the student.  $11k used on tuition above, find overage box 5 $25k - $11k tuition amount used =$14k taxable income. You get the  full AOTC.  Beware the kiddie tax may need to be filed. See What is the Kiddie Tax?  @user17737503813 

Here is how it works - and it is tricky:   1) Student's scholarship income is ALWAYS taxable to the STUDENT and is reported on the STUDENT's tax return.  That is a fundamental to the whole issue.  Most don't realize that.    2)  You must determine which of those scholarships are restricted in their use (normally to Tuition and Books) and which are unrestricted in their use (Pell grants is an example of an "unrestricted" scholarship).    3) The RESTRICTED scholarship income MUST BE reduced by the QEE (Box 1, plus any other QEE, normally books purchased off campus and a computer).   4) the UNRESTRITCED scholarships CAN BE reduced by the remaining QEE, but it doesn't have to be.    5) You can report $4,000 of the QEE that remains on the PARENT's tax return on a dummy 1098-T form.  That creates the basis of the AOTC tax credit.    6) The remaining scholarship income, net of the remaining QEE, is reported on the STUDENT's tax return. If the student has no other income, there may not be a filing requirement in any event.  But be careful, as there are scenarios that create kiddie tax reporting    Here is an example:    7) Let's assume Box 1 is $10,000.  Let's assume that Box 5 is $15,000, $5,000 of which is restricted scholarships and $10,000 is unrestricted scholarships.   😎Since the RESTRICTED scholarships MUST BE reduced by the QEE, we are left with $5,000 in Box 1 and $10,000 in Box 5 for the student to report.      9) $4000 of the remaining $5,000 is reported by the parents on a dummmy 1098-T on the PARENT's tax return.  That creates the basis of the AOTC tax credit on the parent's tax return.    10) that leaves $1,000 of QEE for the student to net against the $10,000 that remainins in Box 5.    11) The student would report $9,000 of scholarship income on the STUDENT's tax return (the net of the remaining scholarship less the remaining QEE).  But if the student has less than $6,750 in other non 1099-NEC income, then it doesn't matter since the student is unlikely to have a filing requirement in any event.    Write the example out out on paper and you'll better understand how this works.  It is critical to determine which scholarships are unrestricted and which are restricted to make this work! 

@baldietax Thank you for clarification, indeed, this was a conversion, I learnt that conversion and rollover are 2 different things and the difference between them is very important. Thank you for the link it helped. Summarizing, 1099-R is a form provided by my bank serves as "a hint" and actually, the 1040 fields are important and they should be as in the page you shared. Good.   I have 1 more question. In 2025 I transferred money to TradIRA for both 2024 (in Jan'25) and 2025 (Nov'25) so my 1099-R states $14000. Should I report $14000 contribution in in 2025 tax return or I should report $7000 in 2025 tax return and amend 2024 and add the 7000 contribution I did in Q1'25? I assume whole both $7000 contributions are non-deductible and I need Form8606 to track that, right?

To indicate that your investment is at risk, follow these steps:   On the "Your Self-Employed work summary" page, click Edit next to your business. Scroll down to Uncommon Situations (under the list of expenses) and click Edit or Start. Check the box that says: "I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss". Click Continue

Unless you rolled after-tax amounts from the employer plan to the Rollover IRA or you made nondeductible traditional IRA contributions, your basis is $0.   "My TurboTax had carried over a $4000 Traditional IRA basis since 2016 for my two TRADITIONAL IRA contributions I made in the late 1990s (when I did not yet have employee benefits) .   I wonder should I also add at least the  2021 IRA Contribution amount of $7000 into the existing basis of $4000 in the  IRA Worksheet ?  Cause I forgot to add the $7000 contribution in my 2021 TurboTax."   Although it's possible, if you were not covered by a workplace retirement plan the late 1990s, it's not clear why your contributions then would have been nondeductible.  However, if your employer at that time offered a pension plan despite you not being eligible for a defined-contribution plan, that could explain why those contributions were nondeductible.   If your $7,000 contribution for 2021 was nondeductible, that needed to have been reported on a 2021 Form 8606 where it would have been added to the $4,000 carried in from past years.  That would make your basis in nondeductible traditional IRA contributions be $11,000.  If the rollover to the IRA included after-tax basis, that would add to your basis in nondeductible traditional IRA contributions.  However, you have not mentioned that that rollover included any after-tax basis.

For the 2025 taxes in TurboTax, you must enter the 2024 nondeductible contribution as prior-year basis rather than a current-year contribution.  Because you made the 2024 contribution after filing your 2024 return, you must first ensure that contribution is "on the record" with the IRS, then carry that basis into your 2025 Form 8606.  If you did not file an 8606 for the 2024 nondeductible traditional IRA contribution, you will want to send it to the IRS.  See About Form 8606, Nondeductible IRAs.  

My problem is a little different but still, it's the old cliche of getting a nickel out of a penny scheme. I love TT, been using it for years (12). But I was stuck in trying to get an answer about our RMD's in New Jersey state (Pensions, Annuities and IRA Withdrawal worksheet, line 4a: "Enter the total of IRAs contributions previously taxed". Line 4a had 0 and line 4b had 0 in it. Fix was to just delete line 4a, leave it blank for this is an inherited IRA). So, I paid the $60 for their online live expert tax assistance program to get this answer. Screen (I'm in Windows 11 using TT Home & Business) comes back and says an agent will call in two hours 15 minutes (Not a guess or an estimate, but exactly)! Not three hours plus which is when I was called back. Between 6:00pm eastern to 6:25 eastern, I went online, put in numerous searches and finally found an answer and it was FREE! So why am I writing? I would like back my $60 for services NOT rendered. The agent gave me the standard business run around that once they respond and go live, it enacts the purchase of the program even though I never asked a question about an error or issue with TT. Don't get me wrong, I'll pay gladly for assistance I have with a product but paying and I say I fixed the problem myself and would like my money back, and they won't or can't give my money back, is NUTS! Furthermore, when I asked her for help, she just referred me to go online to TT and search the help topics for Customer Service, NO direct link. So luckily, I paid for it with our Discover card and I'll pursue them with this issue in hopes that they can reject the charge. I wish all that might read this, good luck, have a beer and calm down your frustration. Cheers....

See this for how to transfer last years tax date to the 2025 online return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/transfer-last-year-return-turbotax-online/L279eUvY2_US_en_US

You enter interest you received from the IRS the same way you would manually enter a 1099-INT from your bank or other financial institution.  Click on the Search icon, and type in "1099-INT", then select "Jump to 1099-int".  Click on "Add investments" and enter the information on the notice you received from the IRS.  

Thank you @btehrani93.   I've been having this issue as well until now.  Just tried it again and it did indeed work (at least it looks that way).   No idea what changed on Intuit's end, but I'm glad it's sorted.

You may want to contact a Taxpayer Advocate in your area.  See this IRS website for Taxpayer Advocate - https://www.taxpayeradvocate.irs.gov/ or call 1-877-777-4778   Just because the 2024 return has not been processed does not mean you cannot file a 2025 return Complete and file the 2025 return as you normally would and when asked for th3e 2024 AGI enter a 0 (zero) since the IRS has not processed the 2024 return.