I am trying to add my 1098-T to my tax return but it keeps saying that it is not deductible, why is that?

[VictorW9]

You may need to provide additional information. Whose 1098-T is it? A dependent? Yourself? Please let us know a little bit more so we can help you.

[dpmmusic]

Same for me on my 2022 return.  Trying to enter 1098-T for my dependent, full-time student.  Say's it's not deductable?   It's a lot of money and should reduce the money I owe by a lot.   Why is this happening?

[BrittanyS]

There are a few reason's why you may not qualify for the education expense deduction.  

• You're filing your return as Married Filing Separately
• Your adjusted gross income (AGI) is too high
  • The American Opportunity Tax Credit AGI limit is $90,000 ($180,000 for joint returns)
  • The Lifetime Learning Credit AGI limit is $90,000 ($180,000 for joint returns)
• Your expenses were paid with tax-free scholarships, fellowships, grants, education savings account funds, tax-free savings bond interest, or employer-provided education assistance

For more information on education credits, see the link below:

Education Expenses Credit

@dpmmusic 

[dpmmusic]

Thanks for the reply.  We are filing Married Jointly.  AGI is below $180k.  1098-T Paid for with cash. I should get the deduction correct?

[AmyC]

Maybe. You must have a qualified student (no felony charges) at a qualified institution, at least half time for 5 months. To see the full rules, visit Who is eligible to take the American Opportunity Tax Credit?

Even better, take a quick IRS quiz, Am I Eligible to Claim an Education Credit? This will make any issues clear.

Reference:

 Pub 970 IRS Education Information

@dpmmusic 

[Critter-3]

It is not a deduction but a credit ... please review the form 8863 to see how the education credit was calculated ... notice only part of it is refundable and part is non refundable.  

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See the following FAQ for instructions to view your return in TurboTax Online. It has instructions to see your entire tax return, or just Form 1040 and Schedules 1, 2, and 3. "Preview my 1040" will also show you Schedules 1, 2, and 3.

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