Do I qualify for the education tax credits?

[Carolineddemers]

Hi! My husband and I file jointly. We already filed our taxes as the school said we wouldn’t be receiving 1098-T forms. Well my husband received one & I’m wondering if he qualifies because I don’t want to amend my return until I know that it would be worth it. Do any certain boxes need to be checked (ex. The at least half time student box) or are any box number’s supposed to be greater or less than another box (ex. Box 1 & 5). I’m just confused on if I should even bother amending if he doesn’t qualify for the credits. Thank you in advance ! 

[xmasbaby0]

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

https://ttlc.intuit.com/questions/3262983-who-is-eligible-to-take-the-american-opportunity-tax-credi...

https://ttlc.intuit.com/questions/3262984-who-is-eligible-for-the-lifetime-learning-credit

[Carolineddemers]

I have looked at all of those links already and they do not answer the questions I need to know above. Specifically need to know if the “a student at least half the time” box needs to be checked. Thank you though 

[Hal_Al]

 Q. Do any certain boxes need to be checked?

A. Not necessarily.

Q. Does The at least half time student box need to be checked?

A. Only for the more generous credit.

Q. Are any box number’s supposed to be greater or less than another box (ex. Box 1 & 5)?

A.  Usually box 1 needs to be more than box 5. But, there may be additional qualified expenses. And there is a loop hole available to claim a credit, even if you are on scholarship.

You're wanting a simple answer to a complex question. There isn't one. That's why you enter your info and let TT do the determination.

For more specific advice, provide more specific info, particularly what's in box 1 and box 5. Are you half time or more?  Are you a  degree candidate? Are you an undergrad? Do you have a tax liability.

[Carolineddemers]

I don’t feel like it’s that complex of a question. I don’t want to amend my tax return if I essentially didn’t have too so I’m wondering if there are possibly things that are obvious on the 1098-T that need to be a certain way in order to get the tax credits. I’d rather not get specific on here about the exact numbers on my tax forms. Thanks for your info 

[Hal_Al]

There is a tax “loop hole” available. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses. Student must be half time or more for the AOC.  

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket, she would only need to report $5000 of taxable scholarship income, instead of $6000.