AOTC

Forum|Forum|2 years ago
March 2, 2024
1 reply
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I should be eligible to receive the AOTC as this is my second year declaring my tuition for higher education on my taxes but TurboTax is not recognizing that when I input all my forms and deductions. What am I doing wrong?

mglauner

Did you have out-of-pocket Education Expenses that were not covered by Scholarships/Grants? Are you a dependent?

If your 1098-T has a higher amount in Box 5 (scholarships) than in Box 1 (tuition), you wouldn't be eligible for education credits.

However, make sure the amounts are correct, as sometimes a two-term scholarship amount is listed, but only a one-term tuition amount.

You can correct the amounts in both areas in your TurboTax entry.

Since we can't see your return in this forum, here's more discussion on AOCT Credit that may apply to you.

@HDC6689

Hal_Al

Employee

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit.

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

If you are eligible, you have answered something wrong, in the interview. But, a lot of people are just not eligible.

https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

https://ttlc.intuit.com/community/college-education/discussion/i-have-a-1098-t-form-that-i-received-from-my-school-and-i-entered-all-the-information-but-it-said-i/01/998249#M23054