I'm eligible for lifetime credit but can't claim it

[gsantana37]

I'm filing married jointly and below the 160K taxable income.  I attended graduate school and I'm trying to claim the lifetime credit, but it says I am not eligible.  I have both a 1098-T form and a 1098-E. What am I doing wrong?  

The note I am getting is the following

1. Somebody else can claim you as a dependent on their return 2. There is no taxable income in your return 3. There were no net qualified education expenses."

[MindyB]

Verify that you have taxable income (after taking the standard deduction or itemized deductions) on line 15 of your 1040. If there is no taxable income after deductions, the credit won't be available. If you do have taxable income, verify you did not accidentally check that someone can claim you, and have entered your 1098-T, I would be happy to take a look at the return for you. Follow the step below.

I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[gsantana37]

my token number is 574375865-76768888  

Thank you!!!

[MindyB]

Thank you for the token.  I have reviewed your return, and it looks like your income is too high to claim the credit, unfortunately.

In IRS Publication 970, there is a Lifetime learning credit Modified adjusted gross income (MAGI) Worksheet.  Here, the maximum income starting point is adjusted gross income on line 11 of the 1040, there are several non-applicable adjustments to arrive at MAGI.

[gsantana37]

Thank you!!! I thought the tax credit was based on taxable income.  Appreciate your help