After entering 1098-T, turbo tax returned this message: "There were no net qualified expenses" All entries were triple checked and AGI is below the limit for 2020 American Opportunity Credit.
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You could be getting this error message if you did not have an education costs. Per the IRS, an education credit is used to offset the cost to the student. You cannot get an education credit (such as the American Opportunity Credit) for attendance at school if it is at no cost to you. This would happen if you got a full scholarship. If your eligible expenses are $0, then there are no expenses that qualify you to claim the credit.
Thank you for your assistance. I did have over 11,000 in tuition expenses for my daughter in 2020. In years past, I have been able to get the American Opportunity Credit, which I believe is $2500.
Are you claiming the student as your dependent?
Yes, I am claiming the student as my dependent.
If you are claiming the student as your dependent, and the amount in Box 1 is greater than the amount in Box 5, the program should not be showing as "no education expenses".
First verify that the school reported the 1098-T correctly and that the amount paid is in Box 1 and scholarships received is in box 5.
The education section can be finicky, it is really quite complicated and needs to be done in a specific order.
Please enter the student in the "My Info" section before entering the 1098-T
My advice is to delete the forms and re-enter the 1098-T by hand.
Make sure you go through the entire education interview, there are several sections, so scroll down on the "Education Summary" page to make sure you went through all the sections.
The American Opportunity Tax Credit can only be claimed 4 times, but even if that is your situation, the program wouldn't give you that error.
Steps to Delete a Form:
Sign in to your online account
Continue working on your return
Click Tax Tools on the left side bar
Click Tools on the drop-down
Click "Delete a form" on the “Tools Center” screen
Scroll to 1098-T and click Delete
Confirm the delete
Look for Form 8863 and delete that as well if it is listed
Re-enter the 1098-T and again, go through the interview carefully.
Very much appreciated again! I'm going to try this tomorrow; turbo taxed out for the today. Never had this much difficulty with the product. Thanks much!!
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