Hello,
I am a resident alien. I moved to New Jersey from Illinois this year. I was registered in and graduated from a graduate program in Illinois. At that university, I received a tuition waiver, which I think is considered a scholarship for tax purposes (I received a 1098-T form for it). On my 1098-T, the scholarship amount (box 5) is approximately $1000 greater than the payments received for qualified tuition and expenses (box 1).
I received this scholarship/waiver while I was in Illinois and prior to coming to New Jersey. On turbotax, when I got to my New Jersey return, on the scholarships and fellowships page, it automatically filled in the above amount of $1000 as a scholarship amount.
If I received this scholarship before becoming a resident of New Jersey, do I need to report this amount on my NJ return? Or should I list it and then set the "income attributable to NJ" to 0?
Thanks in advance
Do not add the amount if it is not showing up on your New Jersey return.
Scholarships are not taxable in New Jersey, so don’t make an addition and subtraction if it is not showing up on your NJ return.
If the scholarship was taxable on your federal return and is showing up as other income on your NJ return, then set the amount to $0 as awesome Tax Expert @MaryK4 advised since (1) the amount was received in IL and (2) it is not taxable to NJ.
Since the scholarship was from your Illinois studies, you will allocate it as0 New Jersey income.
Thank you for the reply. Just to clarify, should I just not mention this scholarship on my NJ return? Or do I list it, the amount as $1000, and then list $0 as attributable to NJ?
Do not add the amount if it is not showing up on your New Jersey return.
Scholarships are not taxable in New Jersey, so don’t make an addition and subtraction if it is not showing up on your NJ return.
If the scholarship was taxable on your federal return and is showing up as other income on your NJ return, then set the amount to $0 as awesome Tax Expert @MaryK4 advised since (1) the amount was received in IL and (2) it is not taxable to NJ.