tax credits for education

Forum|Forum|5 years ago
February 18, 2021
1 reply
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i started the free version for my niece and with the american opportunity credit, she was getting a $1000 extra refund than the calculation on the desk top version that I purchased. The desk top version gave her a $4000 tuition credit, but her refund was 1000 less than the free version. (this of course will need to be upgraded to include the credit, but since I already purchased the desktop version, i do not want to pay for more.

why the 1000 difference and how do I fix it? The numbers are entered exactly the same

TurboTax Home & Biz Windows

Hal_Al

Employee

It's not just the numbers. It's the qualifying interview.

Most students (almost all) are not eligible for the $1000.

A full time, unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion (Up to $1000) of the American Opportunity Credit if he supports himself by working (earned income). You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit.

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

If you are eligible, you have answered something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC