Lifetime learning credit. Graduate degree with AGI of $66k. Actual gross income is $68,200. IRS site says it should be based on MAGI. Why can't I claim?

Forum|Forum|4 years ago
May 19, 2021
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I am working on a graduate degree and no one can claim me as a dependent. I have MAGI of $66k. I am attending an eligible school. Why won't the software let me claim the credit?

TurboTax Free Edition Online

rjs

Employee

What reason does TurboTax give that you are not eligible for the Lifetime Learning Credit? It gives a reason on the screen that shows your eligibility for each of the three education benefits. There are other possible reasons besides income.

Did you receive unemployment benefits in 2020? If so, how much? Are you including the unemployment in your "actual gross income" figure of $68,200?

What adjustment reduces your "actual gross income" to an AGI of $66,000?

What are you calling "actual gross income"? If it's a specific line on Form 1040, which line?

What is your filing status?

Please give exact amounts. You might be close to a cutoff point or threshold where using approximate or round numbers could hide the problem.

SweetieJean

Employee

The LLC is nonrefundable, so doesn't benefit you if your tax liability is already down to zero. See below for calculation of MAGI for the Lifetime Learning Credit

1.	Enter your adjusted gross income (Form 1040 or 1040-SR, line 11)	1.	_____
2.	Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45)	2.	_____
3.	Enter your foreign housing deduction (Form 2555, line 50)	3.	_____
4.	Enter the amount of income from Puerto Rico you’re excluding	4.	_____
5.	Enter the amount of income from American Samoa you’re excluding (Form 4563, line 15)	5.	_____
6.	Add the amounts on lines 2, 3, 4, and 5	6.	_____
7.	Add the amounts on lines 1 and 6. This is your modified adjusted gross income. Enter this amount on Form 8863, line 14