Dependant educational credit 1098 T

[smadala]

Hi

I have paid more than 30000 as tuition and related expenses for my daughter for medical college  and she got 6800 dollars as scholarship for 2019.  But turbo tax home and business not showing any tax credit and showing message I am not eligible for credit.  As per the Tax law I am eligible for 2000 dollars of Lifetime Learning Credit.  For the year 2019 my daughter has income from a part time job and filed separately.  Could you please explain why I am not getting Credit?

[DanaB27]

Please be aware that we cannot see any details of your return. Please review the requirements for the lifetime learning credit:

Who is eligible for the Lifetime Learning Credit?

You are eligible to claim the Lifetime Learning Credit if all of the following requirements are met:

• You (or your dependent or a third party) paid qualified education expenses for higher education.
• You paid the education expenses for an eligible student.
• The eligible student is you, your spouse, or a dependent you claim an exemption for on your tax return.
• Your modified adjusted gross income is less than $67,000 ($134,000 if you are married filing jointly).
• The credit is reduced between $57,000 and $67,000 ($114,000 and $134,000 if you are married filing jointly).

One of the advantages of the Lifetime Learning Credit is that you can take the credit every year for higher education as long as you meet the qualifying requirements.

If you meet the requirements then

• you can try to delete and renter the education expenses carefully to see if you then qualify. Please see How do I view and delete forms in TurboTax Online? or
• you can upgrade to TurboTax Live and have someone review your return.

[xmasbaby0]

How old was your daughter at the end of 2019?  Is she being claimed as a dependent on your 2019 return?  you can only get the education credit if you claimed her as your dependent.

[Lawrence B Butler]

How much is the total lifetime credit allowed? 

[smadala]

No, She is not dependent on me and she has income for 2019., she filed separately , but I have paid education tuition and all other expenses.

[xmasbaby0]

Sorry--if she is not being claimed as a dependent on your tax return you cannot get education credit even if you are the one who paid all that money......

You did not answer how old she was at the end of 2019--which could make a difference.  If she was under the age of 24 you could claim her as a dependent and get the credit.   If she was a full-time student UNDER the age of 24 at the end of 2019, the amount of her income does not matter.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2019 taxes as long as they meet the following requirements:

Qualifying child

• They are related to you.

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

• They are not filing a joint return with their spouse.

• They are under the age of 19 (or 24 for full-time students).

• No age limit for permanently and totally disabled children

  •      They live with you for more than half the year (exceptions apply).

Qualifying relative

• They don't have to be related to you (despite the name).

• They cannot be claimed as a dependent by someone else.

• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

• They are not filing a joint return with their spouse.

• They lived with you the entire year.

• They made less than $4200  (not counting Social Security)

• You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.