Miscalculating Lifetime Learning Credit

[rachelowings]

Hi, 

I think the algorithm is not giving me the highest possible Lifetime Learning Credit. I had an Americorps grant reported on 1098-T and on 1099-Misc. I think this is messing up the 20% calculation that should be my Lifetime Learning Credit; the credit I'm getting looks like it's being calculated on the reported "extra" education expenses (like books and things) and not the total amount of education expenditures I see when I look at main page of education expenses. Has anyone had this issue/know of a workaround? I guess the difference is only like $200, but as a student that's kind of a lot!!

Thanks!

[Hal_Al]

TurboTax (TT) will automatically reduce the amount of qualifying expenses,  in box 1 of your 1098-T, but the mount of Scholarship in box 5 (and/or by any additional scholarship you enter).  To keep that from happening, you need to tell TT that you used some of the scholarship for room & board (or other unqualified expenses). That makes that portion of the  scholarship taxable income to you, but then the tuition expenses can be allocated to the Lifetime Learning Credit (LLC). 

"Books and things" are not qualified expenses for the LLC, unless required to be purchased from the school. 

[rachelowings]

I think that must be my problem! Thanks for clarifying-- I think I must have been confusing the rules for AOTC and LLC.