The software is indicating that I am not eligible for the lifetime learning credit based on income, but I clearly am. Is there an error in this calculation currently?

Forum|Forum|4 years ago
May 10, 2021
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TurboTax Premier Online

rjs

Employee

There is an error in calculating eligibility for the Lifetime Learning Credit if you have unemployment income and your AGI is in a specific range, which depends on your filing status and the amount of unemployment.

What is your filing status?
What is your exact adjusted gross income (AGI) on Form 1040 line 11?
What are the exact amounts on Schedule 1 lines 7 and 8?
What does it say on the dotted lines to the left of the amount on Schedule 1 line 8?

See the following FAQ for instructions to preview these forms in TurboTax Online. "Preview my 1040" will also show you Schedules 1, 2, and 3.

How do I preview my TurboTax Online return before filing?

zbartushAuthor

Thank you for your reply.

Filing Status = Single.

AGI according to line 11 on Form 1040 is less than the amount (but its close) to be excluded.

Lines 7 and 8 in schedule 1 are blank.

The dotted lines to the left of of line 8 in schedule 1 are blank.

rjs

Employee

If Schedule 1 line 7 is blank, you do not have any unemployment income. That means you are not affected by the error in TurboTax in calculating eligibility for the Lifetime Learning Credit.

Filing as single, you are not eligible for the Lifetime Learning Credit if your Modified Adjusted Gross Income (MAGI) is $69,000 or more (for 2020). For calculating Lifetime Learning Credit eligibility, MAGI is the AGI on Form 1040 line 11 plus certain additions. The additions are the following.

The foreign earned income exclusion and/or housing exclusion (Form 2555, line 45).
The foreign housing deduction (Form 2555, line 50).
Any income from Puerto Rico or American Samoa that you excluded.