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March 25, 2021
Question

Can I exchange my $4000 Tuition and Fees Deduction for American Opportunity Credit of $1000, as this would benefit me more (seeing as I don't owe taxes this year)?

  • March 25, 2021
  • 2 replies
  • 0 views
It doesn't seem that Turbo tax allows me to exercise this option. Is this a bug in the system or is there a reason for this?

2 replies

macuser_22
Employee
March 25, 2021

Use the "tools" search topics for "letme" (without the quotes)  to select the credit you want.

 

TurboTax should select the method that is most beneficial.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Hal_Al
Employee
March 25, 2021

You're probably not eligible for the American Opportunity Credit (AOTC).

 

 A full time, unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion (the $1000) 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. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC

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

 

To try to change it: Type letme (no space between let & me) in the search box. When the dropdown list appears, click on letme rather than "jump to letme'. On the next drop down, click on the "jump to letme” link.