Student Loan & Education Tax Topics

Education

Education: Deductions, Credits, and Answers

There’s no doubt about it, education tax benefits can make a huge difference in your refund. The American Opportunity Tax Credit (AOTC) typically offers the largest tax break. But if you don’t qualify for that, there’s always the Lifetime Learning Cr... read more

TurboTax Online 2025 currently has a bug that makes it impossible to claim the Lifetime Learning Credit for a foreign school. It keeps defaulting to AOTC,

THE FOREIGN SCHOOL IS US DOE ACCREDITED BUT DOES NOT ISSUE 1098-T AND DOES NOT HAVE A FEDERAL ID NUMBER

Treatment of employee stock shares after acquisition

Suppose the following scenario occurs:An employee of company A has 1000 vested shares of company Acompany B purchases company AAs part of this acquisition, employees of company A can chose to receive from amoung the following:- a payout of $5.00 per ... read more

AOTC and 529 w/d basis portion

My son is NOT my dependent and NOT a qualifying relative (due to his age/income and not being a FT student). He was a half-time student his final spring semester and he got a 1098-T for $5,000. This is the first year he has not been my dependent so t... read more

PA enacted a student loan interest deduction for 2025 with no income limit (Act 56). TurboTax is omitting it for filers above the federal phase-out threshold.

Pennsylvania's new deduction (up to $2,500, reported on Schedule O) is independent of the federal deduction — PA has no income phase-out. But when TurboTax zeros out the federal deduction due to income, it silently skips Schedule O on the PA return e... read more

Is there an answer for "If the designated beneficiary is someone else, double-click to link this1099-Q to the applicable Qualified Education Expenses Worksheet?

If the designated beneficiary is someone else, double-click to link this1099-Q to the applicable Qualified Education Expenses Worksheet, what do I put here. One of my daughter's is already listed for If the designated beneficiary is a dependent, doub... read more

i am a nurse practitioner and received a 1099-nec for precepting a college student. i'm not sure how this should be filed.

1099-Q box 6 question is worded very confusing

the step-by-step form for the 1099-Q brings you to Box 6. The question is worded twice. Once where you would answer Yes. And once where you would answer No.=======================Box 6: Is the recipient of the distribution the designated beneficiary?... read more

Does exempt tribal income include tribal scholarship money for a student?

1098 T for Graduate Student on Stipend

My daughter is a graduate student on stipend. She receives a 1098 T that includes Tuition paid and Grant/Scholarship distributed. Turbotax takes the full Grant/Scholarship distribution, substracts the tax-free tuition paid, and uses the result as tax... read more

Why isn't "Full time student" checked for any of my children?

In reviewing the form, to check it over, I noticed my children are not listed as "full time students," and I can't seem to figure out how to check that box, even after going back through the "dependents" section.

excess withdrawal on multiple 529s for American Opportunity Credit -- allocation

I have a 529 with my daughter as a beneficiary, and my daughter also has her own 529 with herself as the beneficiary. In 2025, we withdrew enough from the 529 to exactly match all the educational expenses, because there were reasons I thought we woul... read more

1098-T and Impact on Total Income

Hello! I am struggling to figure out how to properly input my 1098-T information without it incorrectly calculating my total income. I think the problem lies in the number I am inputting for "Actual amount paid for tuition." In that field, I am inclu... read more

Lifetime Learning Credit - EIN Required?

My daughter attended Esthetician school in 2025 and the school does not provide 1098-T forms. They tell me other students have successfully filed their taxes with alternate documentation / statements showing tuition paid. I have asked for a Federal I... read more