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July 7, 2020
Question

Turbotax is not calculating my education credits properly. How can I fix it so that the American Opportunity Credit comes up on my return?

  • July 7, 2020
  • 1 reply
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1 reply

Employee
July 7, 2020

Are you sure you qualify?

 

Deduction and credits for qualified education expenses (tuition, fees and in some cases books and course related materials and equipment) are tied to dependency. Whoever claims the student as a dependent (student or someone else) on their tax return is the one who can claim qualified education expenses paid out of pocket or with loans for deduction or credit. It doesn't matter who actually paid the expenses. On the other hand, scholarships that paid non qualified expenses such as room and board must be entered on the student's tax return as income.


Here are the qualifications for the American Opportunity credit:
1. It is available only for the first 4 years of post secondary education and cannot be claimed more than 4 tax years.
2. Student must be pursuing an undergraduate degree or other recognized education credential.
3. Student must be enrolled at least half time for at least one academic period beginning during the year.
4. No felony drug conviction on student's record.
5. Credit is reduced if modified AGI is between $80,000 and $90,000 ($160,000 and $180,000 if MFJ)
6. You cannot be claimed as a dependent by someone else.