The first step is to determine if you qualify for credit, You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).If you don't qualify, enter the 1098-T as it is on the student return, do not enter on parent's return.If you do qualify, take $4,000 for education expenses. We can give you a long complicated process of entering both forms on your return but we have finally figured out a quick and easy shortcut.For the parent, enter the 1098-T with no scholarship income and just claim $4,000 of tuition needed.For the child, enter the 1098-T- box 1 already had $4000 used so minus the $4000 from box 1 and fill in everything else.Note, most scholarships are not restricted but if you have restricted scholarships that must be used for tuition, they have to be entered as such. See What You Need to Know about AOTC and LLC and how scholarships and tax credits interact.Does the student need to file a tax return is the next question. Take this quick quiz, Filing requirement.

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CATHYBACON

Level 1

Question

I have a dependent, when I put in her 1098-T for tuition expenses, it claims there were no net qualified education expenses

Forum|Forum|3 months ago
April 13, 2026
2 replies
55 views

No text available

TurboTax Online

AmyC

Level 15

The first step is to determine if you qualify for credit, You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).

If you don't qualify, enter the 1098-T as it is on the student return, do not enter on parent's return.
If you do qualify, take $4,000 for education expenses. We can give you a long complicated process of entering both forms on your return but we have finally figured out a quick and easy shortcut.
- For the parent, enter the 1098-T with no scholarship income and just claim $4,000 of tuition needed.
- For the child, enter the 1098-T- box 1 already had $4000 used so minus the $4000 from box 1 and fill in everything else.

Note, most scholarships are not restricted but if you have restricted scholarships that must be used for tuition, they have to be entered as such.

See What You Need to Know about AOTC and LLC and how scholarships and tax credits interact.

Does the student need to file a tax return is the next question. Take this quick quiz, Filing requirement.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Hal_Al

Level 15

TurboTax (TT)sometimes doesn't do a good job of explaining the reason for not allowing the credit.

Provide the following info for more specific help:

Box 1 of the 1098-T
box 5 of the 1098-T
Any other scholarships not shown in box 5
Is any of the Scholarship restricted; i.e. it must be used for tuition
Did you also receive a form 1099-Q for a 529 plan distribution
Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
How much taxable income does the student have, from what sources
Are you eligible to claim the tuition credit (income not too high)?
Is the student an undergrad or grad student?
Is the student a degree candidate attending school half time or more?

Here's a post on the five main points on the 1098-T:

https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/3760212#M63114

https://turbotax.intuit.com/tax-tips/college-and-education/guide-to-tax-form-1098-t-tuition-statement/L3SqH8fg0 TT 1098-T article