I entered my 1098-t education expenses but it says I do not qualify for an education tax break because "There were no net qualified education expenses". Why?

[roseus3]

I am running into this issue, I do not have any scholarships, my annual income is less than 90,000, I am 29, live on my own, and cannot be claimed as a dependent but it's still acting as though I cannot receive a tax break for my education expenses. My tuition alone was $9,690.00 for the 2024 year, which is what is listed on my 1098-T. Why is it not giving me the credit? I understand why it's not giving me the American opportunity credit because I've exceeded the four year limit, however I do qaulify for the Lifetime Learning Credit, and the app says as such until I hit the maximize button and then it glitches out says that I'm not eligible for an education expenses credit.

[DaveF1006]

It depends. The Lifetime learning Credit is a non-refundable credit that reduces your tax liability toward zero. If your tax liability is zero before the credit is applied, you won't receive the credit. This means you can use the credit to pay any tax you owe but you won’t receive any of the credit back as a refund. 

This may not be the reason why you aren't receiving the credit. You may look at the IRS link I provided below to see if there were other reasons you may have not qualified. 

Educational Credits 

[Michael D76226]

TT is not showing follow up screens that ask for 529 expense breakdown, books, computers, etc... Just keeps returning to the main screen of let you pick what to work on. I've deleted the 1099Q and started over but does the same. I never get a chance to enter the breakdown, ends up taxing me.

[Michael D76226]

TT tax never shows me the summary, returns to main pick what you want to screen. I go thru, enter the 1099Q but it never lets me detail the expenses into Books, computers, room and board, etc... Sooooo frustrating. I'm just not going to report 1099Q I guess! And I have deleted the 1099Q several times, started fresh but does the same thing.

[KrisD15]

If you enter Form 1099-Q, it only asks what the distribution was used for. You do not need to list them.

If you enter Form 1098-T, the program gives you a place to enter additional expenses. 

You can enter only the 1099-Q under 

• Wages & Income
• Less Common Income
• Miscellaneous Income, 1099-A, 1099-C    START 
• Coverdell ESA and 529 qualified tuition programs (Form 1099-Q)

You can enter Form 1099-Q and/or Form 1098-T under 

• Deductions & Credits
• Education 

If you have both forms and wish to see if you are eligible for an Education credit, use Deductions & Credits 

[Michael D76226]

This screen never comes up, the educational summary screen!  I'm unable to enter the additional qualified expenses.

[Michael D76226]

Under the ESA and 529 tuition programs.... I can enter the 1099Q but it never lets me enter additional qualified expenses, the Books, Computers, etc. screen. I never see the Educational Summary screen that others have mentioned.  Just pops back to the Select what you want to work on screen

[Hal_Al]

Here's an easier workaround in TurboTax:

Enter the 1099-Q. When asked who the student is answer: someone else not listed here (lying to TurboTax to get it to do what you want does not constitute lying to the IRS).  Enter the student's name when asked.  A few screens later, you'll get one simple screen to enter expenses. Press Done at the 1099-Q summary screen, to get there.

You do not have to deal with the complicated “Educational expenses and Scholarships” (1098-T) section later.