Question

I have TurboTax 2002 seems to miss calculate AOTC credit even Filing on a free online tax return does give me AOTC credit. Use other free online, what's wrong TurboTax ?

Forum|Forum|4 years ago
April 9, 2022
2 replies
0 views

Single, parents don't claim as dependent.
Got AOTC last year, W2 $4K . 1098-T Box 1 $50K, Box 5 $36K

TurboTax Online

If you qualify for the AOTC, the credit reduces the amount of tax you owe dollar for dollar by the amount of the AOTC for which you qualify up to the amount of tax you owe. If the amount of the AOTC is more than the tax you owe, then up to 40 percent of the credit (up to $1,000) can be refunded to you.

Per IRS:

Who is an eligible student for AOTC?

To be eligible for AOTC, the student must:

Be pursuing a degree or other recognized education credential
Be enrolled at least half time for at least one academic period* beginning in the tax year
Not have finished the first four years of higher education at the beginning of the tax year
Not have claimed the AOTC or the former Hope credit for more than four tax years
Not have a felony drug conviction at the end of the tax year

*Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

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gianghoangdaoAuthor

Correction, it was TurboTax 2022 premium version.

R

RaifH

TurboTax Premium does allow the American Opportunity Credit if you meet the eligibility requirements @MayaD listed above. I would check your entries and answers to the questions within the Federal > Deductions & Credits > Education > Expenses and Scholarships (1098-T) section of your return to make sure everything is answered correctly and completely. TurboTax will not add the credit to your return until you answer all the eligibility questions.

If you are still not receiving the credit after completing that section, did you mark yourself as eligible to be claimed as a dependent even though your parents are not claiming you? If so, you are only entitled to the non-refundable portion of the American Opportunity Credit, which based on the information you provided would not give you any benefit on your tax return.

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gianghoangdaoAuthor

Well, I have double checked, triple checked my entries and looked at the worksheets. I even go to the student info worksheet and manually check option 2 to select to use AOTC and form 8863 shows the credit. However, after the "Maximize my education tax break" step, TT still says I am not qualified. That's why I resort to use other free online tax return to check since my tax is pretty simple and it gives me the proper AOTC. I have used TT from my parent last year, so I keep using it to transport all data from last year. For this issue, I will have to use the free online one to file my tax return this year.