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So this seems to work. 1) I entered the AZ credit donations as State Estimated Taxes Paid as an Additional payment in the Interview.   This entry shows up on AZ Tax Pymt Wks (Tax Payments Worksheet) on line 5, Additional Payments.   2) I overrode the Payment value on line 5 to 0/blank.   The value of the credit donations no longer shows up in AZ Form 140 line 53.   3) I created forms 301, etc as usual to claim the donation credit amount.   The Fed and State checks pass without complaints.  Unknown...  will my return be blocked from e-filing?   Can anyone see anything wrong with the approach?  

TurboTax makes it nearly impossible to create a Form 5329 Part IX under these circumstances, particularly with the online version.  My suggestion is to complete Form 5329 outside of TurboTax, then mail the form and, if you are not requesting a waiver, your penalty payment.   https://www.irs.gov/pub/irs-pdf/f5329.pdf https://www.irs.gov/pub/irs-pdf/i5329.pdf

Graduate students can use the loophole to claim the Lifetime Learning Credit. Increase the taxable income to leave room for tuition paid by you. Compare your results claiming different amounts of tuition paid and credit received against the change in income tax. A credit is a dollar for dollar reduction of your taxes while income is just a percentage change of tax liability. The IRS has a great brochure. Fees: To reduce the taxable portion of your scholarship (the amount where Box 5 exceeds Box 1), you can include expenses that weren't on your 1098-T only if they meet the IRS definition of Qualified Tuition and Related Expenses (QTRE). Required Books and Supplies: For the Lifetime Learning Credit, these only count if they must be paid directly to the university as a condition of enrollment. If you bought them from an outside vendor (like Amazon), they generally do not count for the LLC. Accident Insurance/Student Health Fees: Generally, no. The IRS is quite strict here. Even if the school requires you to have insurance, premiums and "student health fees" are specifically excluded from QTRE.

If you are an NJ resident and pay an NJ Inheritance tax on an Inherited IRA, the NJ tax on taxable distributions from the IRA is set at zero until you have recouped the inheritance tax.   @Kdbaker412 

See the attached link which should address your question: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/form-3115-automatic-depreciation-change-can-i-re-enter-in-turbotax-desktop-and-e-file/00/3795193  

I use the desktop version too but couldn't get TT to download all the 1099-B's.  And the desktop version can not download a pdf file (and entering the "summary" of the 1099-B manually makes you physically mail a copy of the 1099-B to the IRS).  So I started an online file, imported my 2024's but it too could not find all the 1099-B's.   So I saved a pdf file from my bank and then allowed the online version to upload it.  I had to clean it up some as for some reason, while it moved over every transaction, it left the stock/bond name off some of the transactions.  I went through and added the names, closed and saved it.  Then went back to my desktop and started a new file by clicking the box that said something about continuing from the online file.  Now I didn't have a whole lot in the first desktop file I had started because all I did was import my 2024 and went straight to the importing data from my financial institution so I didn't have to redo a whole lot of work.  However, if I had followed their step by step I would have to reenter all my business info and retirement income all over again.  So lesson noted.    TT desktop needs to allow downloading pdf files like the online version and I would not have had to jump through all those hoops!  And it is not right with the price TT charges more for the online version ($140 online) versus ($95 at Sam's Club for the H&B version) that they limit it to only one person instead of 5 returns so you can do your own return and that of your kids who need one too!!!

Depending on how TurboTax rounds, your 2023 Form 8606 should have shown something like:   Line 1 = $6,500 Line 14 = $6 Line 16 = $6,500 Line 17 = $6,494 Line 18 = $6   and your 2024 Form 8606 should have shown something like:   Line 1 = $7,000 Line 2 = $6 Line 14 = $6 Line 16 = $7,000 Line 17 = $7,000 Line 18 = $0   The $6 on line 14 of your 2024 Form 8606 carries forward to line 2 of the next From 8606 you are required to file.  If you made a nondeductible traditional IRA contribution for 2025 or you did a Roth conversion in 2025, that would be your 2025 Form 8606.