I spent over 10k on my tuition but my lifetime learning credit is only 1288, not 2k. what is going wrong?

[Hal_Al]

The usual explanation is that you only had a calculated tax of $1288.  The LLC is non-refundable and can only be used to reduce your income tax liability. 

[mari163029]

Unfortunately this is not the case though. I still owe around 4K in taxes

[Hal_Al]

The 2nd most common explanation is your income is in the "phase out" range.  See form 8863 for details. 

[mari163029]

I don’t think this applies to my case because I only made 30k last year. I’m pretty sure turbo tax made a mistake but I’m not sure who to reach out to.

[macuser_22]

Do you have a tax liability (Form 1040 or 1040-SR, line 18, minus Schedule 3 (Form 1040), lines 1 and 2, and the amount from Schedule R (Form 1040), line 22)?        The credit cannot exceed that. 

For the calculations view your 8863 form part II - that should point you to the exact reason.

[mari163029]

I do not. Where do I access the 8863 form on TurboTax? I don’t see the calculations for this anywhere

[macuser_22]

If you are using the online version print all forms and worksheets.

Using "Tax tools" "Print Center".

[Hal_Al · Accepted solution]

@mari163029  said  "I only made 30k last year. I still owe around $4K in taxes".

It sounds like your income was self employment (probably on a 1099-NEC).  The LLC can only be used to offset income tax, not self employment tax. 

The original answer is probably correct:   you only had a calculated INCOME  tax of $1288 (line 18 of form 1040).   The LLC is non-refundable and can only be used to reduce your income tax liability. 

[SweetieJean]

Did you have any Foreign earned income?

[mari163029]

@Hal_Al

You are right. I already knew that the LLC was non-refundable but because TurboTax lumped federal income tax with other federal taxes I was confused as to why I wouldn't get the full LLC amount. I printed out the statements and was able to see that I only owed 1288 in federal income taxes so I am satisfied. Thanks for all your help guys!