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wrong on education credit calculation

Turbo tax software  use education credit form # 8862, I was confused with this 8862 because in IRS this form # is 8863. and also for the first time college student, it only let student take hope credit and don't allow student take lifetime learning credit the same time.  This is a $2000 difference. Is some one in Turbo going to get this money?  Can I return this software and get my money back?

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

wrong on education credit calculation

This is mainly a user community forum, so nothing account-specific can be handled here. Request for refunds should be directed  to TT Support. https://turbotax.intuit.com/support/contact/  use the term “billing issues” in the question box, not "Refund" or it will just give you the IRS phone number to check your refund status. Week days 5 AM - 5 PM Pacific time.

 

The Hope credit died out years ago.  It was replaced by the American Opportunity Credit (AOTC), the only refundable education credit.  Full time  students, under age 24 are not eligible*. There is not a $2000 difference between the  lifetime learning credit (LLC) and the AOTC.  First time college students (~age 19) are usually still dependents and not eligible for education credits. 

 

*There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

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3 Replies
Hal_Al
Level 15

wrong on education credit calculation

This is mainly a user community forum, so nothing account-specific can be handled here. Request for refunds should be directed  to TT Support. https://turbotax.intuit.com/support/contact/  use the term “billing issues” in the question box, not "Refund" or it will just give you the IRS phone number to check your refund status. Week days 5 AM - 5 PM Pacific time.

 

The Hope credit died out years ago.  It was replaced by the American Opportunity Credit (AOTC), the only refundable education credit.  Full time  students, under age 24 are not eligible*. There is not a $2000 difference between the  lifetime learning credit (LLC) and the AOTC.  First time college students (~age 19) are usually still dependents and not eligible for education credits. 

 

*There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

Carl
Level 15

wrong on education credit calculation

The 8862 is used to request the IRS reinstate one's qualification for a credit when the taxpayer has broken federal law by filing a fraudulent tax return and claimed a credit they did not qualify for. It does not pertain to just the AOTC either.

An undergraduate college student that was under the age of 24 on Dec 31 of the tax year generally doesn't qualify for the credit - especially in their first year of college since they still qualify to be claimed as a dependent on their parent's tax return.  But the parent's of that student will probably qualify for it.

The HOPE credit died back in 2010 or there-a-bouts. It was replaced with the American Opportunity Tax Credit (AOTC).

Hal_Al
Level 15

wrong on education credit calculation

If TT is giving you the AOTC and you want the LLC; type> letme <in the search box.  That will take you to a screen where you can select the LLC.

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