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Level 1
posted Feb 28, 2024 2:28:42 PM

I paid $37,000 to Oxford University for a Master's Degree, TurboTax is saying I'm not eligible for an education credit. Why not? I have taxable income + it should qualify

No one can claim me as a dependent either. I see no reason why I'm not qualifying

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10 Replies
Level 15
Feb 28, 2024 2:44:02 PM

Because you're a grad student, you're only eligible for the Lifetime Learning Credit (LLC).  

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. 

 https://www.irs.gov/individuals/llc

https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

 

If you can't find your error, delete it and start over. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  You'll then get the "Your Education Expenses Summary" screen again.  Click the "Add a student" button.

 

 

 

 

 

 

Expert Alumni
Feb 28, 2024 2:48:10 PM

There are two Education credits available, the American Opportunity Tax Credit and the Lifetime Learning Credit.

You can't claim the American Opportunity Tax credit. The credit is only available for the first 4 years of postsecondary school when pursuing an undergraduate degree or educational credential.

 

The life learning credit is reduced (phased out) if your 2023 modified adjusted gross income (MAGI) is between $80,000 and $90,000 ($160,000 to $180,000 if Married Filing Jointly). Since this isn't a refundable credit, the credit can't be more than your tax liability.

Please check: What expenses qualify for the Lifetime Learning Credit?

Level 1
Feb 28, 2024 2:52:40 PM

Hi thanks, my 2023 modified adjusted gross income was not between $80,000 and $90,000, so why does it not show me as qualifying? I meet all the requirements, the software appears to not be working. 

Level 1
Feb 28, 2024 2:53:28 PM

Hi thanks, my 2023 modified adjusted gross income was not between $80,000 and $90,000, so why does it not show me as qualifying? I meet all the requirements, the software appears to not be working. 

Expert Alumni
Feb 29, 2024 7:12:38 AM

Do you have a tax liability?  The  Lifetime Learning Credit is one of the nonrefundable credits.  If you do not have a tax liability, then you would not be able to claim the Lifetime Learning Credit.  What amounts appear on your 1040 form lines 16 through 24?

Level 1
Feb 29, 2024 7:27:34 AM

Hi yes, I'm liable for $7,495.00 and I'm being taxed for it. Yet the software doesn't give me the exemption for my tuition.

Expert Alumni
Feb 29, 2024 8:42:41 AM

It has to be a checkbox. Double check that you marked to acquire or improve job skills.  Qualified Education Expenses - Internal Revenue Service states:

 You must pay the expenses for higher education that result in a degree or other recognized education credential. For the Lifetime Learning Credit, you can qualify if you take the course to acquire or improve your job skills.

 

Unless scholarships or 529 money was used. You cannot claim a credit for education expenses paid with tax-free funds. You must reduce the amount of expenses paid with tax-free grants, scholarships and fellowships and other tax-free education help.

Level 1
Feb 29, 2024 11:01:10 AM

Hi I did not pay with tax free funds. This software is broken. I see no option to check a box in the software for the education being related to job training...

Level 1
Feb 29, 2024 11:05:24 AM

Thanks, I should be eligible but the software is not giving me the credit.

Expert Alumni
Feb 29, 2024 11:35:12 AM

We can't see your tax return in this forum.  The software is working fine in my test return.

 

If you're using TurboTax Online, close the program, clear your Cache and Cookies and return to the Education section.  

 

Try a different browser and make sure you have no other programs running (like Email, or pop-up blockers).

 

DELETE the entries you have made in the Education section and carefully go through the interview again.

 

If that doesn't resolve your issue, Contact TurboTax Support.

 

Here's more info on the Education Credits.

 

@andrewjasko