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Education deduction or credit
My daughter is a freshman in college, and she is filing her first tax return. Her only income is from a scholarship. The 1098-T has $19985 in box 1 and $16079 in box 5. When I entered this information in Turbo Tax, it recommended a Tuition Deduction of $3906 rather than a credit. Given that her taxable income is $0, what is the point of claiming a deduction? Wouldn't she be better off with a credit? If so, is there a way I can get Turbo Tax to pick the credit? Thanks.
‎April 10, 2021
8:25 AM