Why am I not qualifying for the education tax break, yet I paid $6k out of pocket for school? It says "there were no net qualified education expenses", can you explain?

[bebopbabe]

I'm having a hard time understanding why it says "there were no net qualified education expenses" when I spent almost $6,000 on graduate school tuition out of pocket with no loans or scholarships. And my 1098T form has box 1 ($5,703) greater than box 5 amount of zero. Based on my adjusted gross income, I should have qualified for the American Opportunity Tax Credit, since it is $67,247.86. I would appreciate any further explanation of why I do not qualify. Thank you!

[bebopbabe]

Hi Julie,

My 1098T form has box 1 ($5,703) greater than box 5 amount of zero, so my amount of educational expenses eligible for an education credit should have been $5,703. Based on my adjusted gross income, I should have qualified for the American Opportunity Tax Credit, since it is $67,247.86. I would appreciate any further explanation of why I do not qualify. I'm not sure if I'm experiencing a computer glitch online.

Thank you!
Brenda

[JulieR]

Form 1098-T, Box 1 indicates the amount paid to the school, and Box 5 indicates Scholarships/Grants received.  The difference is the amount of Education Expenses eligible for an Education Credit.

TurboTax should tell you why you aren't eligible for the credit.  There are income limitations that may be affecting you.

Click the link for more detailed info on education tax breaks.

[bebopbabe]

Hi Julie,

My 1098T form has box 1 ($5,703) greater than box 5 amount of zero, so my amount of educational expenses eligible for an education credit should have been $5,703. Based on my adjusted gross income, I should have qualified for the American Opportunity Tax Credit, since it is $67,247.86. I would appreciate any further explanation of why I do not qualify. I'm not sure if I'm experiencing a computer glitch online.

Thank you!
Brenda

[bebopbabe]

Nevermind Julie, I withdrew my tax filling with your company for the deluxe option and used my money to pay for the services of another company that was more helpful with answering my questions.

Thanks anyways