fenderpc
New Member

Can we deduct wife’s grad school tuition?

Received 1098-T from wife’s master’s degree school. Payments received around $8000. Scholarship around $2000. Our MAGI is less than $160,000. TurboTax says we are not eligible for a break because “Scholarships, grants, and other tax free assistance exceed the education expenses” [Not true obviously] or “There were no net qualified education expenses.” QUESTION: why isn’t the difference between amount paid and scholarship grant (roughly $6000) eligible for a break?