https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers
A12. Yes. To claim the full credit, your MAGI, modified adjusted gross income (See Q&A 13 for MAGI definition) must be $80,000 or less ($160,000 or less for married taxpayers filing jointly). If your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married taxpayers filing jointly), the amount of your credit is reduced. If your MAGI is over $90,000 ($180,000 for married taxpayers filing joint), you can't claim the credit.
Q. Can’t I get partial credit?
A. Yes. TurboTax (TT) will do that automatically. Since your AGI (and I assume MAGI) is close to $160K than to $180K, you should get most of the AOC.
Married filing jointly. Turbo tax is saying I am not eligible so I am not sure what am I doing wrong
A13. For most filers, it is the amount of your AGI, adjusted gross income, from your tax return. If you file Form 1040 or 1040-SR, your MAGI is the AGI on line 11 of that form, modified by adding back any:
If that's not the reason. Go back thru the interview, you may have answered something wrong. Otherwise, review the requirements.
https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...
https://www.irs.gov/Individuals/AOTC
https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers
https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers