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Thank You for the quick response! She does not have any other income.  So she would put the scholarship amount $9100 and then minus $7500 and then minus $4000. I would just $4000 expenses on my taxes? I am confused. Sorry this is the first time doing this. Can you tell me what numbers I need to put and where. box 1 $6039.50 Box 5 $9154.66 Books, Computer $1900

If you are still having this issue, please provide as many details as possible or even a screenshot so we may try to better understand and offer assistance.  Also, let us know which version of TurboTax you are using.

Do you not see the option?  When you get to the screen that says, "Get your federal refund faster" and it gives the option of Fast deposit to Credit Karma or a bank account, select "No thanks". The next screen is "How would you like to receive your federal refund?" If you are eligible for the Refund Advance, you will see this as an option.   The Refund Advance is not available to everyone.    Here are a couple things to check: If you are using a TurboTax partner affiliate link to use the software, the Refund Advance will not be available. If you select the 5 Day Early Refund Delivery, you will not see the Refund Advance option, but you can return to the refund selection page and find all the options listed. See this resource for more information:  Offer details and disclosures for the Refund Advance  program   Refund Advance Eligibility Here are some of the eligibility requirements to qualify for a Refund Advance loan: You’re 18 or older Your expected federal refund amount is $500 or more You’re not a resident of North Carolina, Connecticut, or Illinois You’re e-filing your federal tax return with TurboTax Your physical address is listed on your tax return. Your address must be located in one of the eligible states and can’t be a PO box or prison address You’re not filing one of these tax forms: 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862 You aren’t filing on behalf of a deceased taxpayer You must report income on a Form W-2, 1099-R, or Sched C You must open or have an existing Credit Karma Money™ checking account

You can only use the "loop hole" if the scholarship is not restricted to being used for tuition and fees.    Using your numbers, student has $9155 in box 5 of the 1098-T and $6040 in box 1. At first glance he/she has $3115 of taxable income and nobody can claim the American opportunity credit. But if she reports $7115 as income on her return, the parents can claim $4000 of qualified expenses on their return. Books and computers are also qualifying expenses for the AOC. So, since the student had another $1500 in expenses for those course materials, paid out of pocket. She would only need to report $5615 of taxable scholarship income, instead of $7115.   If that $5615 is her only income, she does  not even need to file tax return. Although, you may want to have her file to document the reporting of the scholarship as income. Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450).  It is not earned income for the kiddie tax and other purposes (e.g. EIC).   ______________________________________________________________________________________________ TurboTax can theoretically handle all that when you follow the interview carefully. But, it goes smoother if you use a work around in TurboTax (TT). Here's how I would do it. Enter the 1098-T, on your return, but only enter $4000 in box 1. No other numbers. You only enter the 1098-T to get TurboTax to check the proper box on form 8863. Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. The 1098-T that you enter in TT is not sent to the IRS. Enter the 1098-T, exactly as received, on the student's return. Enter book and computer expenses separately.  In her interview, you should eventually reach a screen called "Amount used to calculate education credit" (or similar wording).  Be sure the amount in that box is $4000. You must complete the “education information” subsection to get that screen, That will put all her excess scholarship as income on her return (line 8r of Schedule 1). Be advised some people are saying they're not getting the "Amount used to claim the tuition credit" (or “Education Expenses used for a Tax Credit”) screen on the dependent’s interview.  Check the student information work sheet (part VI, line 17) to verify it was entered.  If not, the alternate workaround is  to enter $4000 less than the actual box 1  amount, when you enter the 1098-T. There's yet another (and simplest) work around. Enter the manually calculated  taxable amount of scholarship ($5615) and enter the 1098-T, on her return, with 0 in box 1 and the  taxable amount  in box 5. In that case the amount in the  "Amount used to claim the tuition  credit" box is 0 (if it comes up).

Do you not see the option?  When you get to the screen that says, "Get your federal refund faster" and it gives the option of Fast deposit to Credit Karma or a bank account, select "No thanks". The next screen is "How would you like to receive your federal refund?" If you are eligible for the Refund Advance, you will see this as an option.   The Refund Advance is not available to everyone.    Here are a couple things to check: If you are using a TurboTax partner affiliate link to use the software, the Refund Advance will not be available. If you select the 5 Day Early Refund Delivery, you will not see the Refund Advance option, but you can return to the refund selection page and find all the options listed. See this resource for more information:  Offer details and disclosures for the Refund Advance  program   Refund Advance Eligibility Here are some of the eligibility requirements to qualify for a Refund Advance loan: You’re 18 or older Your expected federal refund amount is $500 or more You’re not a resident of North Carolina, Connecticut, or Illinois You’re e-filing your federal tax return with TurboTax Your physical address is listed on your tax return. Your address must be located in one of the eligible states and can’t be a PO box or prison address You’re not filing one of these tax forms: 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862 You aren’t filing on behalf of a deceased taxpayer You must report income on a Form W-2, 1099-R, or Sched C You must open or have an existing Credit Karma Money™ checking account

The IRS has just opened on January 26 to accept/reject e-files.   Any returns that have been accepted before today have been accepted in small random "test" batches.  Everyone else has been waiting on the servers in "pending."   Start watching your emails now that the IRS is open.  Many e-files are on the servers so it could still take a day or two.         DID YOU E-FILE?   Did you e-file?   Did you go through all three steps of the FILE section and click a big orange button that said “Transmit my returns now?”     When you e-file your return you will get two emails from TurboTax.  The first one will say your return has been transmitted; the second one will tell you the IRS has accepted  or rejected your federal e-file.  If you filed a state return, there will be a third email (usually a day or two later) that tells you if the state e-file was accepted or rejected.   Check your e-file status:   https://turbotax.intuit.com/tax-tools/efile-status-lookup/

You can use your final paystub of the year to help you with the overtime pay deduction.  Generally, employers will break your weekly pay/ OT down on your pay stubs.  If they did not track it with a year to date, you will need to go through all your pay stubs and total it up for each week. Only the .5 premium amount is deductible.  To qualify for the No Tax on Overtime Deduction the following must apply: You must be a non-exempt employee eligible for Overtime under the federal Fair Labor Standards Act The Overtime must be on hours worked OVER 40 hours.  (if you live in a state where OT pay is required after 8 hours, this does not apply) Overtime must be paid at more than your regular hourly rate.   Only the amount that is over your regular hourly rate is deductible.  For example,  If you make $30 per hour and are paid OT at $45 an hour, you can only deduct $15 per hour as overtime deduction. The deduction is limited to $12,500 Your filing status cannot be Married Filing Separately Your income must be less than $150,000 if you are single or $300,000 if Married Filing Jointly.  If you DID have OT that qualifies, then you can take the following steps to enter your Overtime for the No Tax on Overtime deduction Enter your W-2 Select Continue Continue through to select Overtime under One of these less common situations You will be given the opportunity to have TurboTax help you calculate your Overtime or You can select you already know the amount.  Select the one that applies for you and then walk through the steps to enter your OT Remember, this is a deduction NOT a credit.  This means it will lower your taxable income, which can lower your tax liability.  You will  NOT see a refund in the amount of the OT you enter. The OT is reported on Schedule 1-a, line 14a with the total amount you are qualified for reported on line 21 of Schedule 1-2.   If you are getting the deduction and have income left to reduce, you will see the change to your income on line 11a of your form 1040.  If your AGI is lower than $12,500 your benefit from the deduction will be limited to your AGI before the deduction.  To see your form 1040 you can switch to forms mode if you are using TurboTax Online or if you are using the online version you can select Tools>>Tax Tools>> Preview my 1040.

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.

Probably 32a.   If some or all of your investment is not at risk, you will need to attach Form 6198 - At Risk Limitations, as your loss won't be fully deductible.  Your investment is not at risk if you are protected from losing that money even if the business fails.    You can click that link for more information.  

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.

If you had marketplace insurance for even one month you must enter the 1095A.    Sure hope you notified the marketplace when your work insurance "kicked in".   How to find your 1095-A online Log in to your account. Under "Your Existing Applications," select your 2025 application — not your 2026 application. Select “Tax Forms." Download all 1095-As. Get screen-by-screen directions, with pictures (PDF, 504 KB).  

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.   @mrs_pugs  @user17692025164  @Clarizah85 

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.   @user17694357993  @NGomez23LA 

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.

Some customers are experiencing issues when trying to file and pay with their refund.  We are investigating this issue.  However, if you would prefer to file now, you can do so by switching to pay your TurboTax fees with a credit card instead of using the pay with my refund option by following these steps.

To override and return to your dependent information:    Go to and click on the My Info section on the left panel within TurboTax. Scroll down below "Your info" and you will see "Your household". Once there, click "Revisit" and go back in and review the questions TurboTax asks about your dependent.   It may be that a question is checked that is causing this message.