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March 30, 2024
Question

Lifetime Learning Credit question

  • March 30, 2024
  • 1 reply
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I'm adding my three children's 1098-Ts into Turbo Tax. The youngest qualifies for the AOC. The middle gets LLC of $2000. At first, I didn't have my oldest's 1098, so I entered more info with plans to come back and add hers. When I did, she qualified for the LLC, but when TT maximized our credits, it changed the middle child's to $481, and gave my oldest $1519. The credits are not reducing our tax owed to 0 by far. What's happening here? Thanks.

    1 reply

    Hal_Al
    Employee
    March 30, 2024

    You're saying line 18 of form 1040 is more than $8000. The education credits can only be used to reduce income tax. They cannot reduce other taxes like self employment tax.