Enrolled in graduate program for 2017 and not eligible for any tax credit, please help!

[manubhadoria]

I am currently enrolled in Graduate program and was a graduate student in 2017 as well. I claimed American opportunity credit in 2015 tax return, but this year it seems that I am not eligible for any student credits. I paid almost over $13k last year in education and still no credit. I am filing return using Turbo tax deluxe and it says i am not eligible for tax credit. Any ideas?

[kerriP · Accepted solution]

Why did you not qualify for any of the credits? Did you get a 1098-T?  Did you have school expenses after any scholarships were considered?  

Graduate school tuition qualifies for the lifetime learning credit even if you aren't pursuing a specific degree or if you aren't enrolled at least half-time. However, your modified adjusted gross income can't be too high for your filing status and you can't use the married filing separately filing status. The lifetime learning credit equals 20 percent of your tuition and required fees, up to a maximum credit of $2,000. However, it is a non-refundable credit, which means if you don't owe any taxes, you won't have it refunded to you.

Tuition and Fees Deduction

If you don't qualify for the lifetime learning credit, you might still be able to deduct up to $4,000 of your graduate school tuition and fees under this deduction. 

[manubhadoria]

Thank you so much for responding, please find below some questions and responses:

1. I did get 1098-T
2. there were no scholarships, but i got $1800 from my employer but even after that I paid upto $13K in tuition and school expenses
3. I am filing individually (single filing)
4. I realized I am not eligible for American opportunity credit but i was hoping to get lifetime learning credit, where can i find out about my adjusted gross income? and whats the limit on the income so as to qualify for lifetime learning credit?
5. One last thing, could you please elaborate on how i can still deduct upto $4000 on my graduate school expenses? This will be helpful for sure!

Thanks again!

[kerriP]

Moved to answer

[manubhadoria]

Thanks for your response!

[kerriP]

Education  Use this link to get more information.

If you qualified for the Lifetime Learning Credit or the Tuition Deduction, Turbo Tax should have noted that.  Go back through the questions and make sure you answered correctly.  One other thing, if some of your scholarships can be used to pay room and board (non-qualifying expenses for credits) make sure and apply the scholarships to that expenses first so you will have qualifying expenses left over.  You may have to play around with the Education section.  One other thing, if you have no other income (w-2 etc. ) then I do not think you will qualify for the credit or Tuition Deduction.

[manubhadoria]

I don't have any other income besides w2 and i check in the forms my AGI comes out to be more than 100K, seems like i'll be ineligible for any credits or deductions, is this correct?

[manubhadoria]

Any updates on this, would appreciate your response. This is the only question remaining once it's clear i'll be able to file my taxes. Thanks