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February 15, 2023
Question

It says based on what I entered I don’t qualify for any of the education deductions and credits so why is turbo tax trying to make me pay to upgrade saying I did?

  • February 15, 2023
  • 2 replies
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2 replies

Hal_Al
Employee
February 15, 2023

If you don't qualify for an education credit, or want to eliminate it, you'll have to delete the forms that are related to education credits. If you see form 8863 and form 1098-T, delete them. Click here for instructions

February 16, 2023

Yes, Hal_Al is right that you may need to delete the form if you don't qualify, but it is worth checking to see why you don't qualify. 

 

If you are claimed as a dependent on another's return, go ahead and delete the forms because only the person who claimed you gets the education credit.

 

If you aren't eligible because you are getting the Retirement Savings Contribution Credit, you will still need the upgrade due to this credit.

 

If you aren't eligible because your scholarships (box 5 of 1098-T) are more than your tuition (box 1), you shouldn't delete the forms either. In this case, you may be able to get a larger refund by claiming your scholarships as income. 

 

To see if you can increase your credit by reporting your scholarships as income:

 

  1. Select Federal from the left side menu.
  2. Select Deductions and Credits.
  3. Scroll down/ expand the list and look for Education.
  4. Find Expenses and Scholarship (Form 1098-T), click on Start or Update to the right. 
  5. Use the next few screens to enter your 1098-T, or if it is already there, continue until you get to Did (name) Pay for Room and Board with a Scholarship or Grant?
  6. Enter the amount you want to claim as income this year. 
  7. Continue to the end of the section.

This will add the amount you entered for room and board as taxable income and increase your tuition available for the credit by the same amount. 

 

Other common reasons you may not qualify include filing as Married Filing Separately, or your adjusted gross income (AGI) is more than  $90,000 ($180,000 for joint returns.

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