Reading the eligibility details here and from the IRS, I meet all the qualifications for the American Opportunity Credit. Moreover, using TurboTax Home and Business 2018, I answer the questions, and I am told that I qualify for this credit. For completeness, at this stage I am also informed by TT that I don't qualify for the Tuition and Fees Deduction, the reason being that "Form 8917, Tuition and Fees Deduction Not Available for 2018 (but I read up on that, it should have no impact on AOC qualification). So now I click the button "Maximize My Education Tax Break" which should calculate whether its better for me to take the AOC or the LLC (Lifetime Learning Credit) and it does a short 'analyzing, calculating, finding' progress bar thing then asks me to continue. Now it tells me that I can't claim an education tax break. The 3 possible reasons it gives are
Last year I qualified for the AOC, and my situation was virtually identical. What has changed, am I truly not eligible, despite the fact that I can go through all the qualifier items and verify that I should be?
From what you say, you should get the credit.
You didn't get the credit four times already?
You are not above the income level?
No one else can claim you on their tax return?
You have more education expense than tax-free assistance?
There was a problem with "Imported" 1098-T's.
Please delete and reenter the 1098-T and review the interview questions in the education section.
You can also go to "Forms Mode" (top right) and look at Form 8863 and the worksheets to see what the program is doing.
AOTC is valuable, as you know, so if you're entitled to it, you should get it.
Hi, thanks for trying to help, here are the answers to you questions:
You didn't get the credit four times already? ---No, last year was the first year, I was unaware of the credit in previous years, I am in my 4th years of college, may try to file an amended return for 2015-16.
You are not above the income level?-No, my total income for the year was 1750, entered in TT from a single W2.
No one else can claim you on their tax return? --No, that was what I indicated during the preceding TT questions.
You have more education expense than tax-free assistance?--Yes, Box 1 of my 1098-T shows the total payments made for tuition as 29500, box 5 shows my total scholarships and grants as 15000.
There was a problem with "Imported" 1098-T's.--The information appears to have imported correctly, TT indicated as much after importing.
Please delete and reenter the 1098-T and review the interview questions in the education section.--Tried this, no change.
You can also go to "Forms Mode" (top right) and look at Form 8863 and the worksheets to see what the program is doing.--Unfortunately, Form 8863 never gets added to the return, most likely because TT has 'calculated' that I am not eligible. Looking over the Student Info Worksheet that everything looks to be correct. Scanning down the worksheet to Part VI -Education Expenses, I see that Line 20, Adjusted qualified Expenses for both the AOC and the LLC are correctly showing 15239.
I am not sure where to go from here, in the Student Info Wks Form Part VII Education Credit or Deduction Credit, I tried unchecking the 'Elect credit or deduction which results in best tax outcome' and instead checked the item 'Elect the American Opportunity Credit' but the result is unchanged. Thanks for trying to help me, any other ideas?
It sounds awful, but I would delete ALL the education information and re-enter it. (On the "Here's Your Education Summary" page) delete the student and any other info you entered in that section. Re type the 1098-T and answer the interview questions. Do you have any other education related forms, such as a 1099-Q? Also, you can type letme into the search box to change the choice of credit, but I think it would be the same as checking the form.
I have worked the education section, and one thing is if something goes wrong in it, it is pretty difficult to correct. Better to delete it all and manually type it in. Please let us know if this works for you.
I am having the same issue and the tech support guy says I’m over income limits but I’m not bc I verified them with the IRS and if I was this would be indicated there. I put all our W2s and info into a competitors online tax software and it gives me over $2,000 back in education credits so it’s a problem on turbo tax
Were you able to solve your problem? I have the same situation as yours. Tt uses the tuition deduction instead of the American Opportunity credit but my income is only 2,300.
You are replying to an old threat (from tax year 2018).
You should be able to type letme into the search box and then click the "Jump to letme" link.
That screen will show you which education credit or deduction you are eligible for and allow you to choose if applicable.