I'm a student veteran with 100% coverage through the GI Bill and Yellow Ribbon. I also have other scholarships. Am I still eligible for the AOTC like last year?

[jacksonwar]

Last year, I got to the point where I had to contact a representative to figure out the proper way to input my information so that my GI Bill and other scholarships did not interfere with my eligibility to receive the AOTC. This year, when adding in my information, I am told that I do not qualify for the tax credit. To my knowledge I am inputting everything correctly, but I am still unsure. This was the predicament last year as well. Does coverage due to military service make me ineligible this year, or is it because I am inputting information that I shouldn't be?

[DanielV01]

It depends.  You cannot claim any credit on expenses paid with tax-free money (scholarships and grants).  If you are 100% covered with tax-free scholarships and grants, then, on the surface, it looks like you can't claim AOTC.  However, if you opt to claim some of your grants and scholarships as taxable, then you can claim AOTC on this amount.  To claim the maximum AOTC credit, $4000 of your expenses must be covered with taxable assistance.  The AOTC credits may well make it worth it to claim some of the scholarship as taxable.  This FAQ gives additional information:  https://ttlc.intuit.com/replies/3301849

[jacksonwar]

I understand that. The problem is, actually doing so without messing things up. I don’t want to edit my information and then, because I had no assistance, put myself into a legal predicament for improper filing. If I can call a representative like I did last year, that would be helpful. Or is that option only offered to paying customers?

[DanielV01]

Click on this link:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3300041">https://ttlc.intuit.com/replies/3300041</a>

[jacksonwar]

I called, selected the appropriate options, and was told that I can’t get help unless I pay for an upgrade. Clicking 0 to get through the menus doesn’t connect me with a person.

[DanielV01]

In this forum we are unable to guide you step-by-step.  You can opt to upgrade to PLUS to be able to speak with an agent and then discuss with them your active-duty status.

[jacksonwar]

As to not seem rude, I previously stated that I am a veteran, not active-duty, so I have no need to speak about my active status. I need to figure out what I need to change in my file so that my eligibility for the AOTC is accurate. I have never had Premium, in any capacity, and yet I was given assistance with my last filing because of this same issue. The things you gave me to look at previously didn't explain anything useful for actually how to file. They give explanations of what is able to be done. Being given your contact line, again was not helpful because your automated system will not connect me to anyone unless I pay.  

In short, unless I pay, my taxes will improperly be filed. Thank you.

[DanielV01]

The answer provided by the TurboTax agent at this link gives step-by-step instructions on how to enter the information:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/4882881">https://ttlc.intuit.com/replies/4882881</a>

[jacksonwar]

At this point, I'm just going to waste $30 to get help.