I qualify for the Lifetime Learning Credit but it is saying I can't claim an education tax break.

[Ashby]

Could your income be too high for the credit?

[ardikus]

No, my income was less than $20,000

[Ashby]

Three other reasons I could think of:
1. You received a 529 distribution that covered education expenses
2. Your Box 5 is higher than Box 1 on 1098-T
3. Someone is claiming you as dependent

[ardikus]

Thanks for the responses. Neither of those three reasons apply to me though. I didn't receive a 529 distribution, my Box 5 amount is 0 (didn't receive any grants or scholarships), and nobody claimed me as a dependent.

[Critter · Accepted solution]

Ok ... look at your actual tax return... the LLC is limited to your actual federal tax amount ... if that is already at zero then the credit you get is zero ... look at line 11A of the form 1040.

You can peek at only  the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2)  then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

To pay the TurboTax online account fees by credit card, without completing the 2018 return at this time, click on Tax Tools >>> Tools  and then Print Center.  Then click on Print, save or preview this year's return.  On the next page, to pay by credit card, click Continue.  On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button.  The next screen will ask for all your credit card information so you can pay for the account.

[ardikus]

Thanks for the reply. I thought since I owe about 500 in federal taxes the LLC would be subtracted from that amount until I hit 0, but apparently it doesn't work that way.

[Critter]

It does negate federal taxes but not the other taxes that can be on a federal tax return ... review what taxes are owed that are not being covered by the credit.