Lifetime learning credit with 1098-T form

 

Hello, 

 

I have been asking for help about this issue and as my case seems rare, I have been getting many different advice. Could you help me with that?

 

My situation is : 

1. I graduated from a graduate school in 2019 Spring (I went to the school during 2017-2018)

2. My parents who has been living in foreign country and foreigners sent the tuition to my bank account so I paid tuition. 

3. I was born in the states and am US citizen

4. I only earned $700 in 2017, and $700 in 2018. 

4. I got a scholarship $4500 per semester. 

5. I didn't file a tax during that time because my income was lower than the income required to file tax. 

6. I have 1098 T forms for 2017 and 2018 each year. 

 

So my question is, 

 

1. Can I claim lifetime learning credit? and how?

2. If I claim it, will I owe more tax than getting advantages by doing that?

3. Is there time limit that I can claim it?

4. If you were me, would you claim it or just pass it?

 

Thank you very much for your help. I really appreciate it. 

 

 

LinaJ2020
Expert Alumni

Education

1.  Yes, you may if you meet the requirements.  In order to qualify for the Lifetime Learning credit, you must have made tuition and fee payments to a post-secondary school (after high school) during the year. You can claim the credit for any post-secondary classes you take.  You don't have to be working towards a degree. To see details of eligibility, click here: Lifetime Learning Credit

 

2.  The Lifetime Learning Credit is a nonrefundable credit.  This means you can claim this credit only up to the amount of the overall tax you owe. If you do not have any tax liability, you would not qualify for the credit.  Therefore, if you had tax liability in both 2017 and 2018, this credit is supposed to reduce that. 

 

3.  April 15, 2021 is the last day to file your original 2017 tax return to claim a refund. If you received an extension for the 2017 return then your deadline is October 15, 2021.  For the 2018 tax year, with a filing deadline in April of 2019, the three-year grace period ends April 15, 2022.  To learn more, click here: past years' refund

 

4.  Based on the information provided, what makes you think you do not want to claim it?

 

If you are working towards your bachelor's degree, you might qualify for American Opportunity Tax Credit AOTC.  Note that up to 40 percent of the American Opportunity Credit is refundable, meaning you can actually receive money back if the amount of the credit exceeds your tax liability.  For more information, click here: AOTC

 

 

 

 

 

 

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Hal_Al
Level 15

Education

Q. 1. Can I claim lifetime learning credit? and how?

A. 1. No. The lifetime learning credit (LLC), unlike the American opportunity credit, for undergrads, does not have a refundable portion.  You do not have enough income to have a tax liability, so there nothing to get.

 

 

Education

 

Thank you very much for your reply. 

 

So, it is not possible to claim it for 2020 tax filling correct?

 

I will owe some taxes for that year, so wondering if I can use it for anything related to tax. 

 

Thank you so much again for your help! 

Hal_Al
Level 15

Education

You are  not allowed to claim your 2017, 2018 or 2019 1098-T on your 2020 tax return. Only expenses incurred in 2020 can be claimed.

Education

 

Thank you for your prompt response!

 

How can I claim the expenses, such a rent or laptop, or even travel expenses if I have spent it for work?

I am a music production assistant and the gross income is around 20k

 

Thank you for your help again. I really appreciate it. 

Education

Based on the information you shared, I don't see education expenses that YOU paid. I see your income, and I see a scholarship. What amount of money do you intend the LLC be used for?

Hal_Al
Level 15

Education

Q. How can I claim the expenses, such a rent or laptop, or even travel expenses if I have spent it for work?

A.  Starting in 2018, employees  (W-2 recipients) are no longer able to deduct any job expenses. 

 Even in the "old days" , job expenses were only a misc. itemized deduction.  You only got to deduct that portion of  your misc. itemized deductions that exceeded 2% of your AGI,  and then only if your total  itemized deductions exceeded the standard deduction (which was doubled under the 2018 tax law. 

 

If you are self employed, enter as "other expenses" in the business income/expenses section of TT

Education

 

 

thank you for the explanation. So I guess only self-employee can request deduction for the

expenses regarding the business. 

so right now, my boss is paying a half of the rent as I came to LA for work. When he process payroll, he adds reimbursement for the rent every month and he told me that I don’t have to file taxes for the reimbursement. Is it correct? 

also, he told me he would reimburse taxi expenses to commute to work later. Is it okay not to file All the reimbursement? 

last question is,

 

if I get around $100 for federal income withheld tax on my w2 form, I would most likely to pay more taxes? My last year income was around 20k.

 

thank you so much for your help...

 

 

Hal_Al
Level 15

Education

@likeabird43 

You've changed subjects here.  You may want to start a new thread to get more exposure to more qualified people. 

Right now, you're basically asking education specialists questions about business expenses