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July 15, 2020
Question

Can I see how much my return is with the tuiton & fee deduction but it selects american opportunity credit. How can i override this if i do not agree?

  • July 15, 2020
  • 1 reply
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my 1098t was for $8,500

1 reply

Hal_Al
Employee
July 15, 2020

Type> letme <in the search box. That will take you to a screen where you can select an alternative credit or deduction.  Change it back it you don't like the result (and you most likely won't).

 

$8500 of tuition should have gotten you the maximum $2500 american opportunity credit (AOC).

The tuition and fees deduction (TFD) is only a deduction, not a credit, and is limited to $4000 (and could be only $2000).  So, $4000 times your tax bracket (example 12%) = $480.  The Lifetime Learning Credit (LLC) is 20% of Tuition; so $8500 x 20% = $1700.

 

The TFD does also lower your income for state taxes (in most states). So, for example, $4000 x 5% = $200.