topic 1098-T in Education

1098-T

rdu812 — Sun, 02 Feb 2020 20:20:42 GMT

My daughter is a senior in high school. She took a class thru the high school at a junior college and subsequently got a 1098-T for 450.00 that I paid for. The block on turbo tax asks if she was working toward a bachelor degree... should I mark yes? Will this mess up future deductions for me when she really starts a 4 year college in August on the American Opportunity Credit or other possible higher education credits?

Re: 1098-T

ColeenD3 — Sun, 02 Feb 2020 20:35:36 GMT

Yes, it will. You may not want to "waste it" on a few college courses

The American opportunity tax credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

Re: 1098-T

rdu812 — Sun, 02 Feb 2020 20:57:37 GMT

So what do I mark to prevent that from happening?

Re: 1098-T

ColeenD3 — Sun, 02 Feb 2020 21:06:04 GMT

You could choose to not enter it at all, or you could opt for the Lifetime Learning Credit.

Please click this LINK for more information.