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January 25, 2021
Question

I recieved 1000$ return last year from being a full time student. It's not giving me the option this year

  • January 25, 2021
  • 1 reply
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1 reply

RayW7
January 26, 2021

Make sure you have entered the Education information correctly in TurboTax. 

 

You should receive a 1098t from your learning intuition.  With that information, within TurboTax, go to Personal tab, Deductions & Credits then look for Education. Just enter this information in TurboTax  and it will guide you through the process.

 

There are two types of credits available for students. The American Opportunity credit and the Lifetime Learning tax credit.  

 

You can claim the American Opportunity credit for qualified education expenses you pay for a dependent child as well as for expenses you pay for yourself or your spouse. If you have several students in your family, you can claim multiple credits based on the expenses of each student.

The credit is not allowed for a student who has completed the first four years of post-secondary education as of the beginning of the year. So, if you completed less than four years of college as of January 1, 2020, you can claim the credit on your 2020 return.

  • You can only claim the credit for a year during which the student carries at least a half-time course load for a minimum of one semester beginning in that year.
  • Additionally, the student must be enrolled in a program that leads to an associates or bachelors degree or some other recognized credential.

Expenses covered by the credit include:

  • tuition,
  • mandatory enrollment fees,
  • the cost of books, and
  • course materials.

Room and board do not count as qualified expenses nor do optional fees to cover things like student health insurance, athletics and other activities.

To qualify, students must attend an eligible institution. Almost all accredited public, nonprofit and for-profit postsecondary schools (including many trade schools) fit this description. To make sure a school is eligible, go to fafsa.gov and verify that it has a Federal School Code.

 

The Lifetime Learning tax credit can help cover undergraduate costs for a student who is not eligible for the American Opportunity credit because they're carrying a limited course load or already have four years of college credit. Additionally, the Lifetime Learning credit can also help cover the cost of graduate school and of courses taken to maintain or improve job skills.

You can claim the Lifetime Learning credit for qualified education expenses you pay for a dependent child as well as for yourself or your spouse.

  • The maximum amount of covered expenses is $10,000 no matter how many students you have.
  • This translates into a $2,000 maximum credit ($10,000 X 20%).

Qualified expenses include tuition and mandatory enrollment fees at an eligible institution. Books and course materials can also count, but only if you are required to purchase them directly from the school. Other expenses, such as optional fees and room and board, do not qualify.

 

 

Warning: You can’t claim both the American Opportunity credit and the Lifetime Learning credit for the same student for the same year. However, you can potentially claim the American Opportunity credit for one or more students and the Lifetime credit for up to $10,000 of qualified expenses for other students in your family.