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Level 1
posted Mar 27, 2021 10:52:17 AM

I have tuition expenses on 1098t, but urbo tax tells me that I have no net qualified education expenses - does tuition not count as an education expense?

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3 Replies
Expert Alumni
Mar 27, 2021 11:17:35 AM

You are correct, tuition counts as an education expense.

 

However, you cannot claim an education credit if claimed as a dependent on someone else's return.

If you are eligible, then to claim qualified education expenses, follow these steps:

  • Inside TurboTax with your return open, go to the search box and enter 1098t.
  • Select the Jump to link in the search results.
    • The payments will be listed in Box 1, which will report tuition and related expenses.
    • Report Form 1098-T exactly as it was received.
    • Complete the rest of the interview.

 

For more information, see: Where do I enter Form 1098-T?

 

For more information about what education expense tax breaks are available, see:

The Lowdown on Education Tax Breaks - TurboTax Tax Tips & Videos

Level 15
Mar 27, 2021 11:23:47 AM

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

 https://www.irs.gov/individuals/llc

https://www.irs.gov/pub/irs-pdf/f8917.pdf

Level 1
Mar 27, 2021 12:27:41 PM

Hi - 

Thank you so much for taking the time to reply!

 

Turbo tax doesn't allow many characters for questions, so I was not able to include much information.  I was a full time grad student for much  of 2020, with > 10,000 in tuition expenses.  I am single, well-over 24 and not anyone's dependent.  

 

After reading your last included pdf - I think it may be a case of exceeding the allowed modified adjusted gross income.  Thank you so much for your reply and included links.