I went to a school of cosmetology and paid off $6,000 in one lump late last year. How do I know I can declare it on my income tax filing?

[AlanT222]

Most likely you will qualify for the Lifetime Learning Credit.  

The Lifetime Learning Credit allows a credit against tax owed of up to $2,000 per tax return for educational expenses paid by you for your own tuition (or that of a spouse or a dependent whom you claim on your tax return). You can take this credit for any education at an eligible institution, whether or not you are pursuing a degree or other credential. Cosmetology school supplies are covered because most schools require a lump-sum payment for these items to be made directly to the school.

One of the advantages of the Lifetime Learning Credit is that you can take the credit every year for higher education, as long as you meet all of these qualifying requirements:

• You, your dependent, or a third party paid qualified education expenses for higher education
• The qualified education expenses were for an eligible student
• The eligible student is you, your spouse, or a dependent on your tax return
• For the full credit, your 2020 MAGI (modified adjusted gross income) is less than $59,000 ($118,000 if you are filing jointly)
  • For a reduced credit, your MAGI is between $59,000 and $69,000 ($118,000 and $138,000 if you're filing jointly)

You should receive a 1099-T reporting the tuition you paid.  

Please follow these steps to enter form 1098-T, and see the images below for guidance:

1. Open your return.
2. In TurboTax, search for "1098T" and then click the "Jump to" link in the search results.
3. Answer any education questions that pop up (enrollment status, name of the school, etc).