Skip to main content
April 3, 2022
Question

Does turbo tax automatically give me the american opportunity credit/

  • April 3, 2022
  • 2 replies
  • 0 views
No text available

2 replies

Hal_Al
Employee
April 3, 2022

Q.  Does turbo tax automatically give me the American opportunity credit?

A. Yes and no.  You have to initiate the education interview (essentially "enter the 1098-T"), follow the interview and if you qualify, it's "automatic". 

 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

 

You don't say if you are the parent or the student.  

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. You usually must have actually paid tuition, not had it paid by scholarships & 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.

ColeenD3
April 3, 2022

No. You must enter your 1098-T.

 

Here's how to enter your 1098-T in TurboTax:

  1. Open or continue your return
  2. Select Search and search for 1098-t, then select the Jump to link in the search results
    • Another way to find this section is to select Federal from the left menu, then Deductions & Credits. Locate the Education section and select Show more, then Start or Revisit next to Expenses and Scholarships (Form 1098-T)
  3. If you land on Your Education Expenses Summary:
    • Select Edit next to the name of the student you’re entering a 1098-T for (select Add a student if the student isn’t listed)
    • On the next screen, select Edit next to the school name. You can enter the info from your 1098-T on the following screen
  4. If you land on Do you want to enter your higher education expenses?:
    • Answer Yes
    • Answer Yes to Did you get a 1098-T for the year? and Continue
    • On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue