Lifetime Learning Credit

Chafoomini1 — Tue, 24 Feb 2026 03:48:00 GMT

I received a 1098-T form for going to school part time (at least half full time) and paid $8,769.10 in total tuition costs (box 1) in Box 5, it states that I received $7,203, but this was not an official scholarship or grant. This was part of an employee education program. Am I eligible for Lifetime Learning credit? IRS says I may be.

Re: Lifetime Learning Credit

leeloo — Sat, 04 Mar 2023 12:55:12 GMT

If you are otherwise eligible, you can get a credit for the amount you actually paid. The assistance you received will be subtracted from the Box 1 amount.

Re: Lifetime Learning Credit

Hal_Al — Sat, 04 Mar 2023 12:38:32 GMT

It is not uncommon for the schools to mistakenly put employer assistance in box 5 of a 1098-T. But, just because it wasn't a scholarship, doesn't mean it wasn't "tax free assistance".

By law your employer can give you $5250 maximum, tax free. If you got more than $5250, the amount above $5250 is usually already included in box 1 of your w-2 as taxable income. Since you have essentially paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit. You may have to verify these facts with your employer.

So, you most likely can claim $3519 (8,769 - 5250) in total tuition costs for the LLC. You may have to use a workaround in TT. The simplest thing to do is just change the numbers in boxes 1& 5 to what your records show ($8769 in box 1 and 5250 in box 5)*. The 1098-T that you enter in TT is not sent to the IRS.

Be careful, in the TT interview, you will later be asked about employer assistance. If you already modified box 5 to account for it, don't duplicate the info at the employer info section.

*The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2022 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

topic Lifetime Learning Credit in Education

Lifetime Learning Credit

Re: Lifetime Learning Credit

Re: Lifetime Learning Credit