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April 6, 2025
Question

Not sure why I am not eligible to take the tuition credit after I filled 1098 T

  • April 6, 2025
  • 2 replies
  • 0 views

Hi There,

 

1098 T

Box1: 70,667.

Box5: 44,352.

My MAGI:$176,924

 

I think I should be eligible for this, but why?

Here is what I got:

"

You can't claim an education tax break
 
Based on what you've entered so far you are not eligible for an education credit.
 
Here is why you may not qualify:
 
 
 

 

Your income exceeds the maximum limit
 
 

 

Somebody else can claim you as a dependent on their return
 
 

 

Scholarships, grants, and other tax free assistance exceed the education expenses
 
 

 

There were no net qualified education expenses

"

2 replies

April 6, 2025

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

 

TurboTax Online:

  1. Sign into your online account.
  2. Locate the Tax Tools on the left-hand side of the screen.
  3. A drop-down will appear. Select Tools
  4. On the pop-up screen, click on “Share my file with agent.”
  5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
  6. Please provide the Token Number that was generated in the response.

TurboTax Desktop:
If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:
 

  1. Click on Online in the top left menu of TurboTax Desktop for Windows
  2. Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number.
    • Enter your email used for TurboTax > Enter your code > Send
  3. Write down or send an image of your token number and state then place in this issue.
  4. We can then review your exact scenario for a solution.
  5. Please also tell us any states included in the return. This is necessary for us to view the return.
    • *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')


 

YunguangAuthor
April 6, 2025

Thank you, however, I was not able to locate "tax tools"

 

April 6, 2025

It looks like you may have gotten signed out- choose to pick up where you left off, or pick any category, Wages and Income for example, to get back into TurboTax Online and see the full menu.

 

Hal_Al
Employee
April 6, 2025

There is a phase out of the tax credit when your MAGI is between $160K nd $180K.  At your MAGI, you're only going to get $385 of the $2500 AOTC or  $308 of the $2000 LLC. 

YunguangAuthor
April 6, 2025

Thanks,

 

But the TurboTax online version says I am not eligible. So I can't enter this into my tax return.

April 6, 2025

Correct, you are not eligible.  Your MAGI is too high.  You mistakenly computed MAGI using taxable income (after standard deduction) instead of AGI (before standard deduction).