I'd appreciate any help with the following two questions before I go out of my mind!


1. I'm trying to help my daughter fill out her taxes but when it comes to the state I don't know where she should be filing.
We live in NJ, she attends college and works in NY. I've already filed the federal claiming her as a dependent on mine and helped her file her federal in accordance with their rules noting that she can be claimed on mine. I also filed my NJ State but I don't know if she should be filing her state tax in NJ or NY? It's a minimal 2,600 and they didn't take out any state taxes.
In the front of the NJ 1040 Resident Return it states under "who must file" that if NJ was your domicile for the year and your filing status is single and your gross income from everywhere was more than 10,000... you have to file. That sounds like she doesn't have to file in NJ because her income was certainly less than 10,000?? But what about NY?

I can't even find NY forms with instructions that allow me read about it because I don't know what their resident return is even called other than NY resident return. Lol All I see are form numbers when I try to pull something up and don't see any simple step by step instructions like I have in my NJ book. I'm really confused.

2. I have a son who graduated college in May and then went to California to attend law school. His qualifying tuition fees for the law school alone were 37,000. Unfortunately his father was diagnosed with stage 3 throat cancer and he felt the need to leave school and come back home to help his father and be close to him. That means that all those loans are now still owed and he won't be continuing on for his degree. Is there any way to report such a loss? I tried the Tuition and Fees form 8917 and also the Lifetime Credit form 8863. Both of those forms only cut the taxes of which he has none therefore making everything go to zero. He can't even take an EIC because he's only 23 and you have to be at least 25.
If anyone knows of another way to claim such a loss please let me know.

Thanks in advance to anyone who takes the time to help me.

1. She lives in NJ. File in NJ.
2. Consult a tax professional on this.

1. Your daughter lives in NJ and works in NY.
She will file NY return as nonresident reporting all the income from NY sources.
She will also file NJ tax return reporting all the income she earned while living in NJ. On the NJ tax return, she will claim credit for taxes paid to NY.

But every state have a minimum income for the filing requirement. Check at the state website. May be she does not need to file any tax return less she has a refund.