Question

Education Credit

Entered 1098 T for son who is a dependent

Box 1 Tuition Payment $13,824

Box 5 Scholarship $1,122

Box 8 Atleast Half Time Student Checked

1099Q Recipient my name beneficiary is son

Box 1 Gross $4,400

Box 2 Earnings $772

Box 3 Basis $3,627

Availed american opportunity credit in prior 3 years

Question: TurboTax says you cannot claim education credit for one of the reasons below

1. Scholarship exceeds tuition expenses

2. No net qualified tuition expenses

Why am i not able to avail the $2,500 education credit. Why does turbo tax does not pick my tuition expenses of $13,824?

Here are a few things to check:

For the 1099-Q, make sure you checked you as recipient on one screen, and your son as beneficiary on the next screen.
Make sure the Form 1098-T is identified with your son.
Make sure the numbers in TurboTax for the 1098-T and the 1099-Q match your actual forms.
Also, consider whether your student is ineligible for other credits because of your income levels (e.g., the American Opportunity Tax Credit).
Click through all the screens in the education section, and check your entries and run the "optimizer" button.
There should be a question about how to apply your 1099-Q distribution versus the education credits, so make sure you have "allocated" money to the education credits.