Ajt116
Returning Member

Deductions & credits

@KrisD15 hello, thank you for the follow up. The only other question I have is, so before I received this payment. I made the payment difference that is indicated on my 1098-T. I received approx $800 in scholarships, and my tuition was $2500. I paid about $1700 out of pocket in January. I didn’t receive this grant until May, and was told to use it for certain expenses. I only put that I had $40 in expenses which I used for books in January. Since I received this grant in May, I did not put any of the expenses that I used it for when it asked what my expenses were, which is what I understood from that statement you posted from the IRS. Wouldn’t I still be qualified to get the lifetime learning credit for that $1700 I paid towards tuition? My parents already claimed the American opportunity credit for the previous 4 years so I put that I already claimed it 4 times, but it shows that I can get 20% of the $1700 I paid out of my pocket for tuition. I just understood it as, the $1200 I got from the CARES ACT grant was used for expenses and to just not include those expenses that you paid with on the grant.