Is the 1098t supposed to increase my tax refund?

user365779 — Thu, 06 Jun 2019 09:10:53 GMT

Form 1098-T, Tuition Statement reports the amount of qual...

PeterM — Thu, 06 Jun 2019 09:10:54 GMT

Form 1098-T, Tuition Statement reports the amount of qualified education expenses paid by the student during the tax year. Your 1098-T may qualify you for education-related tax benefits like the American Opportunity Credit, Lifetime Learning Credit, or the Tuition and Fees Deduction. If you qualify for more than one benefit, the TurboTax Education Optimizer will automatically select the one that gives you the biggest federal tax benefit.

The IRS doesn't refund your tuition costs, but they will give you education credits, or an education deduction.

The main difference between getting a deduction and receiving a tax credit is that a deduction lowers your income that is subject to tax whereas the tax credit lowers the tax itself. The following is a list of credits and deduction available...

American Opportunity Credit

The American Opportunity Credit can save you up to $2,500 in tax for the education expenses of each eligible student. To qualify, the student must pursue a degree at a school that is eligible to participate in the federal student aid program. The credit is only available to students in their first four years of attendance, who enroll at least half time for one academic period during the tax year and do not possess a felony drug conviction.

The credit amount includes the costs you incur for tuition, fees and course-related books, supplies and equipment necessary to attend the institution. If the credit amount exceeds the amount of tax you owe, you can receive up to $1,000 of the credit as a refund.

Lifetime Learning Credit

Lifetime Learning Credits are available to all taxpayers who attend at least one course during the year at an institution eligible to participate in the federal student aid program. It is not necessary that the student pursue a degree or certification to qualify, and it's available for any year of study. The credit covers the cost of tuition and fees plus any amount for books and supplies you are required to purchase directly from the school.

This credit is of particular value to those students attending postgraduate programs. As of 2016, the maximum benefit of the credit is $2,000. However, the lifetime learning credit is nonrefundable if it exceeds your tax bill for the year.

Tuition deductions

If you prefer to claim a deduction for your school expenses rather than a credit, the IRS allows you to deduct some of your tuition and fee payments. Since this is not an itemized expense, anyone can take the deduction. One thing to keep in mind is that you can never claim more than one educational tax benefit per student, per year. You cannot claim a tuition deduction and a tax credit in the same year for the same student.

Turbo Tax will not allow me to claim a deduction for my 1...

suphaus — Thu, 06 Jun 2019 09:10:58 GMT

Turbo Tax will not allow me to claim a deduction for my 1098-T - simply says I don't qualify even though I've deducted this for the last 3 years.

why am I not getting my 1000$ refund this year?

adamsdawd — Thu, 06 Jun 2019 09:11:02 GMT

why am I not getting my 1000$ refund this year?

What city at @adamsdawd and did you still not recieve the...

jordong2 — Thu, 06 Jun 2019 09:11:05 GMT

What city at @adamsdawd and did you still not recieve the money yet

Re: Form 1098-T, Tuition Statement reports the amount of qual...

jenritter — Fri, 21 Feb 2020 01:02:56 GMT

I had a sizable refund until I added the tution amounts on my 1098-T form. It cut the credit in half. Does that sound right?

Re: Is the 1098t supposed to increase my tax refund?

JamesG1 — Fri, 21 Feb 2020 01:26:52 GMT

Taxable scholarship income can be reported on 1098-T when the box 5 value exceeds the box 1 value. This could reduce your refund.

See IRS publication 970 page 6

"Taxable Scholarships and Fellowship Grants If and to the extent your scholarship or fellowship grant doesn't meet the requirements described earlier, it is taxable and must be included in gross income."

topic Is the 1098t supposed to increase my tax refund? in Education

Is the 1098t supposed to increase my tax refund?

Form 1098-T, Tuition Statement reports the amount of qual...

Turbo Tax will not allow me to claim a deduction for my 1...

why am I not getting my 1000$ refund this year?

What city at @adamsdawd and did you still not recieve the...

Re: Form 1098-T, Tuition Statement reports the amount of qual...

Re: Is the 1098t supposed to increase my tax refund?