If I qualify for all the Education Tax Breaks but TurboTax forces me to pick the Tuition deductible instead of AOC, how can I amend this?

Forum|Forum|5 years ago
January 27, 2021
2 replies
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TurboTax says this is because it is my maximized deduction, but I prefer the refund rather than the tuition deduction. Additionally, how does might this affect my loan disbursement?

TurboTax Deluxe Online

ColeenD3

To qualify for the AOC, it must be for the first 4 years of school. If you have already taken it for 4 years, it will be disallowed. Other potential issues may be:

You are not above the income level?
No one else can claim you on their tax return?
You have more education expense than tax-free assistance?
There was a problem with "Imported" 1098-T's.

fujipro400Author

The first two are should be a non-issue as no one has or should claim me as a dependent this year. I did not make more than 90,000. Can you elaborate on the 3rd point?

Hal_Al

Employee

3rd point : You have more education expense than tax-free assistance

You cannot claim the AOC based on qualified education expenses (QEE: tuition, fees and course materials) that were paid for by tax free scholarships, employer tuition reimbursement, VA benefits, etc.

Although there is way to declare some of those benefits taxable and then claim the AOC.

Hal_Al

Employee

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.

It will give you the option to select AOC or LLC. Try it, if you get better results, leave it, otherwise change it back.

fujipro400Author

thank you! I can now change it, although while on the previous screen it said I qualified after I click AOC using these directions it now says otherwise.