2017 education expenses different qualification for 2018

Forum|Forum|7 years ago
June 1, 2019
1 reply
17 views

I qualified for the 2017 education expenses paid for qualifying children but do not for 2018 and have the same MAGI. Turbotax gives no explanation for not qualifying. How do I get an answer?

TurboTax Deluxe Windows

CarolynM

Level 12

Yes, the education tax credits changed dramatically under the new tax laws.

If you are claiming for your children, you are most likely claiming the American Opportunity Tax Credit.

Who can claim:

• You pay qualified education expenses of higher education.

• You pay the education expenses for an eligible student.

• The eligible student is either yourself, your spouse, or a dependent you claim on your tax return.

Student qualifications:

1. As of the beginning of 2018, the student had not completed the first 4 years of postsecondary education (generally, the freshman through senior years of college), as determined by the eligible educational institution. For this purpose, don't include academic credit awarded solely because of the student's performance on proficiency examinations.

2. Neither the American opportunity credit nor the Hope scholarship credit has been claimed by you or anyone else (see below) for this student for any 4 tax years before 2018. If the American opportunity credit (and Hope scholarship credit) has been claimed for this student for any 3 or fewer tax years before 2018, this requirement is met.

3. For at least one academic period beginning (or treated as beginning) in 2018, the student both: a. Was enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and b. Carried at least one-half the normal full-time workload for his or her course of study.

The standard for what is half of the normal full-time workload is determined by each eligible educational institution. However, the standard may not be lower than any of those established by the U.S. Department of Education under the Higher Education Act of 1965.

Income limits:

To claim the full credit, your MAGI,? modified adjusted gross income must be $80,000 or less ($160,000 or less for married filing jointly).
You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).

For more information, follow this link: AOTC