Q. Is there a way that the taxes I paid on the total tuition amount can be utilized for the Lifetime Learning Credit (LLC)?
A. Yes, but not exactly. The $14,250 of income, included in box 1 of the W-2, and that the taxes were withheld on, can be used to claim the Lifetime Learning Credit. You only need $10,000 to get the maximum LLC ($2000). The LLC is a non-refundable credit (it can only reduce your tax liability).
Q. On my 1099T box 1 has a small amount that was graduate fees i paid and box 5 was empty. So how do I enter the LLC claim, in TurboTax?
A. Enter the 1098-T with $14,250 (+ the grad fees) in box 1 and box 5 blank.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2023 expenses".
Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS
