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

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.

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?

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 

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?

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 

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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