Tax Year Prior to 2020: American Opportunity credit

[acb271]

m y MAGI is $85500.  Why does turbo tax not compute the Amerrican Opportunity credit for 2019.  I thought the credit is available for single incomes under $90000.

[MayaD]

The maximum annual credit per student is $2,500. You qualify for the credit if you:

• Have not completed the first four years of post-secondary education.
• Enroll in at least one academic semester during the applicable tax year.
• Maintain at least half-time status in a program leading to a degree or other credential.
• Have ever been a state or federal criminal because of a drug conviction, then he/she isn’t eligible for the tax credit.

For single Taxpayer the credit will phase out if your Adjusted gross income is between $80000 and $90000.

[acb271]

I understand the credit is phased out but turbo tax is not showing a phased out credit amount 

[MayaD]

Another reason why you didn't qualify for the credit might be if you received any grants or

scholarships.

[acb271]

so you are saying that since my daughter received $1500 scholarship or grant I become ineligible  for the credit?  Thanks

[JotikaT2]

 No, having scholarships will not prevent you from taking the American Opportunity Education Credit.

As long as you meet the requirements listed by MayaD above, you should qualify. 

I recommend reviewing your input as follows.  

1.  Go to the Federal section of the program
2.  Select "Deductions & Credits"
3.  Select "Expenses and Scholarships (Form 1098-T)" and click start
4. Make sure you select "Edit" next to your child's name so you can enter your 1098-T information.
5. Review your input on each of the screens circled to ensure you have entered the information needed.  

Continue through the screens and answer the questions as applicable. TurboTax will determine which credit you qualify for based upon your answers. 

You should get to the following screens which will show you which credit you qualify for and an explanation as to why you received the credit. 

[acb271]

the only message I get at the end  is "there were no net qualified education expenses"

[VictorW9]

You possibly don't have any qualified education expenses. If you have a scholarship, you may end up having no qualified education expenses as you may not have paid any out of pocket expenses. Also, as you are within the phase out range to qualify for the benefit, any little credit that you could have got could have been wiped out due to the phase out limits.