turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How do I choose option 2 on the education related savings option (the american opportunity vs lifetime credit)?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
KrisD15
Expert Alumni

How do I choose option 2 on the education related savings option (the american opportunity vs lifetime credit)?

Look over Pub 970

 

Choosing an Education Credit takes a bit of planning.

Usually, the American Opportunity Tax Credit is worth more, however it may only be used four times. 

College expenses usually span over five years. 

 

You need to look at how the credits will impact this year's return, and if one credit should be "saved" for another year. 

 

The max expenses for the AOTC is 4,000

The max expenses for the LLC is 10,000.

 

If you only have less than 4,000 to apply to a credit for 2023, but expect to have 4,000 or more in four future years, PERHAPS you should save the AOTC for those four  future years. 

If you expect to get employer reimbursement or a very large scholarship next year, PERHAPS you should take the AOTC now.

 

There is no one easy answer to your question as the education section has so many variables. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Hal_Al
Level 15

How do I choose option 2 on the education related savings option (the american opportunity vs lifetime credit)?

Type letme (no space between let & me) in the search box. Then press enter. Then  click  on the link "jump to letme''. 

TT will give you the option to select another tuition  credit.

 

The LLC is a straight 20% of tuition paid, all non refundable (it can only lower your tax). Books and a computer are not qualified expenses.

 

The AOTC is 100% of the first $2000 and 25% of the next $2000. books and a required computer count as qualified expenses.  It is 40% refundable. 

 

TurboTax usually chooses the best alternative. For more specific advice, you should explain why you think you should change it. 

 

 

How do I choose option 2 on the education related savings option (the american opportunity vs lifetime credit)?

Thank you! This worked! Exactly what I was looking for. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies