Errors in Education section?

[maryandtheboys]

Hello -

Turbo Tax says that I can't claim an education tax break because my scholarships, grants, and other tax free assistance exceed the education expenses and there were no net qualified educational expenses.  I am in a doctoral program.  I received $4666. in scholarship, but my tuition was $20,295.  I also had two children in college.  This seems like a mistake in the program.  Also, I had difficulty entering my tuition into the program and had to do a work-around.  Something doesn't seem right here.  Can you please help?  Thanks!

[GiseleD]

If the software is telling you that you had no net qualified education expenses, but your tuition obviously exceeded your scholarships, then it sounds like the work-around you did is the culprit. I recommend deleting all the student and 1098-T information you currently have in the software and starting over with the below process:

1. Open (continue) your return, if you don't already have it open.
2. Search for 1098t and then select the "Jump to" link or "Go to" button at the top of your search results.
3. On the Your Education Expenses Summary screen, select Add A Student.

• If you get taken to a different screen, skip to Step 6.

       4. Select the student whose name is on the 1098-T and answer the questions that follow (the type of degree, full-or half-time, etc.)

       5. After you enter the name of the school, the next screen will ask if that school sent you a 1098-T. Answer Yes and proceed.

       6. If you've already gone past the 1098-T screen, the "jump to" and "go to" functions will take you to Now let's gather additional education         expenses or a different screen. Just keep going until you reach Your Education Expenses Summary. On this screen you can either:

• Select Add A Student if you need to enter a 1098-T for someone else (and then resume steps 4 and 5 above); or
• Select Edit for the student in question, and then either the first Edit button on the next screen (to revisit the 1098-T for a previously-entered school) or Add New School to enter a new 1098-T.

Some important tips about entering this form:

• Parents: If the student listed on the 1098-T is your dependent, enter the 1098-T on your return – even if your dependent paid the tuition.
• Students: If you're not being claimed as a dependent, you can enter the 1098-T on your return regardless of who paid the tuition unless it was your employer. In that case, just keep the 1098-T with your tax records.
• Enter your 1098-T exactly as is even if the amounts are wrong (this is common). You'll get a chance to correct this info and enter additional expenses later in the Education interview.
• Leave blank boxes blank. Don't enter 0 for any blank boxes on the form, as this generates errors.

[maryandtheboys]

Hello - Thank you for the reply.  I did what you suggested (clearing the form and re-entering the information) and it still says that I am not eligible for an education deduction or credit.  Reasons why are that my scholarships, grants, and other tax free assistance exceed education expenses, or there were no net qualified education expenses.  Neither of those are true.  So, I'm still a little confused about this.  Thanks.  

[LukeT]

I too believe the program is in error.  I am in the same boat. I have 2 kids in college, and I pay their expenses from a 529.  After scholarships, and grants, etc etc.. I had to pay $28K+ and TT still says benefits exceed education expense.  

I don't get it.