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what did you do - you need your latest PIN for 2025 filing from irs.gov (in case you used an old one from last year or that was originally mailed to you), and enter it under the Other Tax Situations section.   (I thought from last year that these rejects count towards your 5 e-file limit but someone from Intuit said here on another topic that they don't, not sure what will happen if you try a 6th time).

Qualified Tuition Plans  (QTP 529 Plans) Distributions General Discussion It’s complicated. For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q.  The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q. Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent. You can and should claim the tuition credit before claiming the 529 plan earnings exclusion. The American Opportunity Credit (AOC or AOTC) is 100% of the first $2000 of tuition and 25% of the next $2000 ($2500 maximum credit). The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit. Room and board (R&B) are also qualified expenses for the 529 distribution, but not the AOC (R&B are also not qualified expenses for a scholarship to be tax free). But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit,  that gets him an exclusion from the taxability of the earnings (interest) on the 529 plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit regardless of whose money was used to pay the tuition. In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.   Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.  Example:   $10,000 in educational expenses (including room & board)    -$3000 paid by tax free scholarship***    -$4000 used to claim the American Opportunity credit  =$3000 Can be used against the 1099-Q (on the recipient’s return)   Box 1 of the 1099-Q is $5000 Box 2 is $2800 3000/5000=60% of the earnings are tax free; 40% are taxable 40% x 2800= $1120 There is  $1120 of taxable income (on the recipient’s return)   **Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip!  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."  ***Another alternative is have the student report some of his scholarship as taxable income, to free up some expenses for the 1099-Q and/or tuition credit. Most people come out better having the scholarship taxable before the 529 earnings. A student, with no other income, can have up to $14,600 of taxable scholarship (in 2024) and still pay no income tax. 

First complete your Federal return in TurboTax.  Next, do a "Part-Year Resident" return for the state you lived in earliest,  then do a "Part-Year Resident" return for the state you moved into.    TurboTax will ask for the name of the states that you live or worked in during 2025 and you can follow the interviews for those states. 

@baffled321  said: When I enter 1098-T and 1099-Q in TurboTax (TT), it immediately reports taxable withdrawal for the rolled over amount and offers American Opportunity Tax Credit (AOTC) which is incorrect as the fees/room/board expenses were paid with 529 money.   TT will assume you want to claim the AOTC, if you are eligible, even if it means paying a little tax on the 529 earnings (the 10% penalty is waived, for the AOTC).  It the 1098-T has $13,000 in box 1 that usually (almost always) does not include room & board.  You only need $4000 of R&B expenses to free up $4000 of tuition for the maximum AOTC.    Even though the 1099-Q issuer did not check the right box on the 1099-Q, you will be allowed to indicate the Roth rollover, in TurboTax.    

@mmm...$200 to file sounds like you've selected one of the LIVE help versions....that selection isn't free.   You can probably remove that if you didn't actually use an Assisted helper   How do I remove TurboTax Expert Assist?

Yes it states that  taxable non-tuition fellowship and stipend payments qualify along with wages, salaries, self-employment income. - for example box 1: $12000 and box 5: $20000.  Can I buy IRA for $6000 to lower my tax.  I tried doing that on turbo tax online, it increase my federal tax and not decreasing it.   Is something wrong with online turbo tax or I am not entering this correctly.

Q, The only way I can see is to neither report with 1099-Q nor 1098-T.  Is that "right"? A. Yes.  The 1099-Q and the 1098-T are only an informational document. The numbers on them are not required to be entered onto your (or your student's) tax return. The interview is complicated and it's easy to make mistakes. Avoid it if you can and you probably can.  You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including a ROTH conversion, to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by qualified expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records (you don’t need it). You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. References: On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."  IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”. "IRS Publication 970, Tax Benefits for Education states: If the entire 1099-Q went to qualified expenses, room and board, tuition, etc; then, you do not need to enter the form."  Also be advised, there's currently a glitch in TT preventing you from entering room & board expense.  It's supposed to be fixed before the weekend, but hasn't happened yet. 

How many students do you have 1098-T forms for?   You may have created extra dependents and/or students on the return.    Use the Delete a Form instructions below to look through your form list and make sure there are not extra dependent and/or student worksheets in your return.  if you see extras, delete them and delete any extra 1098-T forms that were erroneously started.     How to delete forms in TurboTax Online    How to delete forms in TurboTax Desktop

 When you  see a blank box with a red outline, you must create a new royalty asset by typing something like:   “Oil royalty – XYZ lease” “Gas royalty – ABC well” “Mineral rights – Smith property” “Book royalty – Title of book” “Music royalty – Song name”