Will I receive a bigger refund when I use my 1098-T form?

[colette-ray94]

Hello! I am currently a graduate student pursuing a Master's degree and I have received a 1098-T form from my university. Will this form help me get a bigger refund? Am I eligible for a bigger refund through the LLC or the AOTC? How do I use the 1098-T form to my maximum benefit?

[ThomasM · Accepted solution]

It depends.  As a graduate student you aren't eligible for the American Opportunity Credit, but you may be eligible for the Lifetime Learning Credit or the Tuition & Fees Deduction.  TurboTax will ask you questions to determine whether you qualify, and then calculate which is more beneficial to you.

To enter your 1098-T information, click on the Federal Taxes tab, then select Deductions & Credits, then I'll Choose What I Work On, then select Education, and finally Expenses and Scholarships (Form 1098-T).  Then simply follow the prompts.

Here's a link to IRS Publication 970, Tax Benefits for Education, which discusses the criteria for each of the benefits:

https://www.irs.gov/pub/irs-pdf/p970.pdf