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Level 2
posted Feb 4, 2023 9:19:54 AM

1098t -hr block and turbo tax each give HUGE difference

claiming my 19yo unemployed student as a dependant, i already received help from this forum as to the loophole and the american credit to maximize MY return

 

however, each year i put all my info into both hr block and turbo to see if the numbers are about the same

 

usually they are. this year hr block says i am not qualified to take the american credit. my return is just over $200

turbo says hell yeah, you qualify and my return is just over $2700

 

and i am very confused and nervous about submitting it

i put all the info in exactly the same!

0 3 672
3 Replies
Level 15
Feb 4, 2023 9:50:59 AM

Since we can’t see your return it’s hard to give you an answer. You can only compare the returns line by line to see the difference with special attention to how you answered the qualifying questions for the credit. 

Expert Alumni
Feb 4, 2023 9:57:05 AM

The refund difference is $2,500, which is the maximum credit amount for the American Opportunity Tax Credit.

 

We would not be able to tell you why H&R Block is not giving you the credit and TurboTax is without comparing both returns.

 

I suggest comparing Part III of Form 8863 from both returns. You may have answered some questions differently. This is the form used to compute the education credit.

 

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

Level 15
Feb 4, 2023 10:05:40 AM

It sounds like TurboTax says your student qualifies for the American Opportunity Credit (AOC or AOTC) and H&RB says he doesn't.  Review the rules posted by ErnieS0 to make your own determination.

 

 

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next Education Information and go thru the qualifying interview again.

 

If you qualified for the AOTC, in the past, you probably qualify this year. But, there is a 4 time limit. But even if you've claimed it 4 times in the past, TT should qualify you for the less generous Lifetime Learning Credit (LLC).