Can we deduct wife’s grad school tuition?

[fenderpc]

Received 1098-T from wife’s master’s degree school. Payments received around $8000. Scholarship around $2000. Our MAGI is less than $160,000. TurboTax says we are not eligible for a break because “Scholarships, grants, and other tax free assistance exceed the education expenses” [Not true obviously] or “There were no net qualified education expenses.” QUESTION: why isn’t the difference between amount paid and scholarship grant (roughly $6000) eligible for a break?

[HelenaC · Accepted solution]

You don't qualify for the American Opportunity Credit or the Life Time Learning Credit and the Tuition and Fees deduction is not available for tax year 2018. See What is the Tuition and Fees Deduction?

Related Information:

• Who is eligible to take the American Opportunity Tax Credit?
• What expenses qualify for the American Opportunity Tax Credit and which ones do not?
• Who is eligible for the Lifetime Learning Credit?
• What expenses qualify for the Lifetime Learning Credit?
• Can I claim my student loan?