Turbotax keeps saying I'm ineligible for education deduction because scholarships exceed education expense, or no net qualified ed expense. Neither is true. What's up?

[dgwilson4444]

Check your MAGI. Also make sure you run the TurboTax Education Optimizer. TT does not run it automatically.

How much can I deduct?

The deduction is $0, $2,000 or $4,000 depending on your Modified Adjusted Gross Income (MAGI).

• $4,000 deduction for MAGI of $65,000 or less ($130,000 or less for joint returns).
• $2,000 deduction for MAGI between $65,001 and $80,000 (between $130,001 and $160,000 for joint returns).
• $0 if your MAGI exceeds these limits.