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New Member
posted Apr 17, 2023 6:08:35 AM

Why won't turbotax apply the lifetime learning credit even though I am eligible?

Turbotax shows that I am eligible for the Lifetime Learning credit because: 
- My income was less than 90K
- I paid qualified tuition expenses
- I owe federal taxes. 
Turbotax will not apply the tax credit to the taxes I owe, in spite of showing I am eligible. Is this a system error?

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1 Replies
Expert Alumni
Apr 17, 2023 6:55:13 AM

Without actually seeing your return, it is impossible to tell you exactly why you are not getting the credit, but some of the reasons could be

  1. Your taxes you are are self-employment taxes and not just taxes on your ordinary income.  It will not offset self-employment taxes.
  2. You did not go all the way through the questions
  3. You are married filing separately
  4. You answered someone else can claim you as a dependent on their return

What do you see on line 16 of your return?

Do you have a form 8863 attached to your return?

Do you have a Schedule 2 with an amount on line 4?  Self-Employment tax

Do you have a Schedule 3 with an amount on line 3?  Education Credits