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CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

I've encountered an issue with the desktop version of Turbotax.  On the screen to enter the various allowed expenses for elementary and secondary education, I entered a value for tuition, required enrollment fees, books, and academic tutoring.  In a later display after entering the 1098-T information for a couple of dual-credit classes, it prompts for Books and Materials to Attend School.  It shows a non-changeable entry for Tuition and enrollment fees. This value is supposed to be the sum of the elementary and secondary education Tuition and Required Enrollment Fees plus the tuition for the two dual-credit classes.  I found that Turbotax does not include the Required Enrollment Fees in that sum.  Note: There is no 1098-T form for the elementary and secondary educational fees.  I opened a case, [social security number removed], with Turbotax support and got back a response that did not correspond the issue.  When I tried to respond, I found that the case had been closed.  The only way I found around this software bug is to add the Required Enrollment Fees to the Tuition fee in the elementary and secondary educational form.  Has anyone found a fix for this issue?  Is Intuit going to fix the software?  Any thoughts?

Regards, Carlton

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10 Replies
Hal_Al
Level 15

Turbotax not handling elementary and secondary required enrollment fees

If you claiming the 1098-T as secondary education expense, do not enter it at the 1098-T screen.  Just enter it with the other secondary/elementary tuition.

Turbotax not handling elementary and secondary required enrollment fees

Which state?  Is your software updated?  

CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

Hi Hal_Al,

There is no 1098-T for the secondary school.

Carlton

CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

Hi SweetieJean,

There is no state income tax in Texas.

The software is up to date.

Carlton

CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

To explain further using the actual numbers:

Secondary school expense: (does not have 1098-T)

Tuition $5033

Required enrollment fees $1939

Books $113

Academic Tutoring $135

College #1: Tuition $200 (has 1098-T)

College #2: Tuition $270 (has 1098-T)

 

In the Deductions & Credits section after entering the 1098-T's a display with the header:

Did "Student" Pay Books or Materials to Attend School?

Under the section Enter "Student's" Education Expenses: (the following below is shown)

Tuition and enrollment fees: $5503       < this value is not changeable

Books and materials not required to be purchased from the school: $113.

Academic Tutoring (For elementary and secondary schools only): $185

 

The Tuition and enrollment fees of $5503 should have been $7442.  The $5503 value does not include the secondary enrollment fees of $1939.  Turbotax is not handling this correctly.  The only way I have found to get the $1939 to be included is to add the secondary tuition and the secondary required enrollment fees together and enter it into the secondary tuition field.  I don't believe that this is the way to handle the required enrollment fees; therefore, I believe this as a bug in Turbotax.

Hal_Al
Level 15

Turbotax not handling elementary and secondary required enrollment fees

You seem to be expecting something you're not entitled to. There is no federal deduction  or credit for elementary and secondary education.  Many states do have one.  That's what we previously assumed you  were trying to enter.  Delete all education entries

 

If you had a529 plan distribution, elementary and secondary tuition would count for that.  You would enter the expenses at the 1099-Q interview, not at the 1098-T/education expenses section.

 

The $470 on the 1098-Ts , for dual courses,  might qualify for a credit  ($94 max).  

The ability of the parent of a high school student to claim the credit or deduction is limited.  If these courses are provided by an eligible college, this cost qualifies for the Lifetime Learning Credit (LLC). The school must have policy of granting college credit for that course, already taken, if the student ever enrolls there. In other words, it is a requirement that the course be a college credit course, even if the student isn't currently a college student. It’s not that  the student is post secondary, it’s that the course is post secondary. Books are not  a qualifying expense, unless included in the course fee.

Alternatively,  such courses now qualify for the Tuition & Fees deduction, instead of the LLC, but only if tuition is paid to the college and not the high school. (http://www.nytimes.com/2012/04/15/education/edlife/now-deduct-this.html?_r=0 ).

High school students are not usually eligible for the more generous American Opportunity Credit (AOTC), unless they are officially enrolled as a degree candidate.  More importantly, the AOTC is limited to being claimed 4 times, per student.  You don't want to "waste" one of those 4 times on this small amount, if your student is college bound.

 

 

CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

The secondary education fees that were paid were made with 529 funds.

Hal_Al
Level 15

Turbotax not handling elementary and secondary required enrollment fees

If you had a529 plan distribution for  elementary and secondary tuition, you would enter the expenses at the 1099-Q interview, not at the 1098-T/education expenses section. 

 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --ESA and 529 Qualified Tuition Programs (1099-Q)

CarltonT
Returning Member

Turbotax not handling elementary and secondary required enrollment fees

I entered the 1099-Q information for the 529 withdrawal to be applied for the secondary education fees and the two dual-credit tuition fees.

 

I filled out the amounts in the form for Elementary and Secondary Education expenses (tuition, required enrollment fees, books, and academic tutoring).  The issue is that the Required Enrollment Fees are not included in the Education summary page that is displayed after entering the two 1098-T forms.  By the $1939 required education fees not being included in the total tuition and enrollment fees displayed, I loose out on approximately $500 in refunds.  The question is why isn't the Required Enrollment Fees being included in the total of all Tuition and Enrollment Fees in the Education summary page?

Turbotax not handling elementary and secondary required enrollment fees

The only problem with that is that there is a $10,000 limit to using a 529 for secondary education.  So if your expenses are greater than $10,000, you could be subject to a 10% penalty.

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