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@ tinyylovee wrote: I have not received the 2024 NJ State Tax Return. It does show up as accepted and when checking the state website it just shows processing. There is no updates. Any help would be great.   I assume you mean a 2024 New Jersey state tax refund.  You will need to phone the New Jersey Division of Taxation to find out the reason for the delay.   Or maybe you're close to one of their regional assistance locations if you wish to stop by in person.

This is a difficult situation for you because your employer made out the check to the IRS and not to you. As a result, they haven't received payment yet. There is no way you can attach this check to your return if you file electronically so you need to print and mail in your return with the check and a letter of explanation on why the check is included. Here is how to report on your return so there won't be any questions or "flags" in your return.   Go to Deductions & Credits > Estimates and Other Taxes Paid.  Select Estimated Tax Payments. Enter the check amount as a Federal payment. (It doesn't strictly matter which "quarter" you pick, but "4th Quarter" is most common for year-end reimbursements). I have read that you should mail the check and then efile immediately after mailing. I don't recommend this procedure because it may take time to process your check.  In the meanwhile since you efiled, the IRS may be looking for that estimated tax payment that never arrived until they got around to processing it. You may not  want to take this risk unless you are a risk taker.   Instead, print and mail your return. Make sure you put your name(s) and SSN(s) on the check just in case it gets separated from the rest of your return when it is received by the IRS. Once your return is complete and printed, you will mail your return in accordance with the filing and mailing instructions included in your TurboTax forms.     When you mail your return, Use Certified Mail: Since this is a high-value third-party check, mail it via USPS Certified Mail with Return Receipt. If the IRS claims they never got it, this receipt is your only proof of mailing.    Make sure you keep all copies of your return, including the check and letter of explanation for future reference.     

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