TT tells me I'm not eligible for the tuition deduction. But I don't fit any of the reasons for being ineligible. Am I doing something wrong in filling out that section?

[lwoott]

I paid tuition for grad school in 2017, along with textbook expenses.  I was able to claim this deduction in 2016.  But this time, I'm getting a message saying that I'm ineligible for this credit.  There's a list of reasons, and none of them applies to me (I think).  I don't know if the tax law has changed or if I'm doing something wrong in the form.  I filled it out exactly as directed, using the 1098-T from the school.

Box 1 is blank, and Box 2 has the amount billed.  I tried using the option to fill in the pop-up box that asks for tuition actually paid, and that didn't change anything.

[macuser_22 · Accepted solution]

The tuition and fees deduction, PMI, energy credits and other deductions expired on Dec 31, 2016 and were not renewed by Congress in the December tax bill, however, in the The Bipartisan Budget Act of 2018 that was signed into law on Feb 9th those deductions and others were made retroactive for 2017.

Before you can add any of those deductions the changed forms must be updated to comply with the new law. That might take a while. The IRS must write the new rules, issue electronic specifications for the new forms and approve them before TurboTax and other e-file providers can add them. If history is any guide, that process can take 1 to 2 months. It usually takes TurboTax 10-14 days after the IRS issues the specifications. (It took the IRS a month and a half to approve some the forms that the Dec tax law changed.)

The IRS says:
https://www.irs.gov/newsroom/irs-statement-on-retroactive-extender-provisions

Nothing can be done until the IRS acts and issues the new form specifications.

https://ttlc.intuit.com/replies/6585982

[lwoott]

Thanks--so does that mean I should just wait for an update from TurboTax before filing my taxes?

[macuser_22]

I have the same situation with my granddaughter.    If the IRS has not acted by April 1, I am going to file anyway and amend if and when they make the forms available.    (I have heard that some Congress representatives are talking about extending the filing date from April 17 to the end of May because of this.)