Turbotax is stating I'm not eligible for this credit but I can answer no to all of the bullets it's saying that may be reasons why I'm not eligible. My 1098-T has an amount in box 5 that is less than box 1, I make about $61k/year, no one else claims me as a dependent. Right now it is telling me I owe $259, but someone else is telling me I should be getting a refund of $948 based on the same info?
The lifetime learning credit uses $10k to get the full credit. Let's see how much we can get.
Step 1 - scholarships - were they restricted for use in paying tuition or could they be used however you needed.
Step 2 -How much tuition is in box 1
For example: 1098-T box 1 is $15,000, box 5 17,000
Need $10k for LLC
Tuition is $15,000 - 10k for LLC is $5k to be covered by scholarships.
Scholarships are $17k and use $5k on tuition. This leaves $12k to go towards room and board.
You get the full LLC.
The LLC is non-refundable. That is, it can only be used to offset an actual tax liability on line 18 of form 1040.
If you are eligible, you have answered something wrong, in the interview. But, a lot of people are just not eligible. See Also see this TT support article https://turbotax.intuit.com/tax-tips/college-and-education/what-are-education-tax-credits/L7TuLrVqZ
https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers