Tax Year Prior to 2020: College Tuition

[cturner216]

Why is college tuition we paid for our children not counting as a tax credit and/or deduction? 

[VictorW9]

These are requirements for the credits:

• You can’t claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student.
• You can’t claim either of these credits if both of these are true:
  • You’re married.
  • You and your spouse file separate returns.

Both credits are phased out as your income climbs:

• Lifetime Learning Credit:
  • If you’re filing as single or head of household, the credit starts phasing out at $55,000 and is eliminated at $65,000.
  • If married filing jointly, the credit starts phasing out at $110,000 and is eliminated at $130,000.
• American Opportunity Credit:
  • If you’re filing as single or head of household, the credit starts phasing out at $80,000 and is eliminated at $90,000.
  • If married filing jointly, the credit starts phasing out at $160,000 and is eliminated at $180,000.

[cturner216]

We are married filing jointly and our adjusted income is under $160,000. Why are we not getting a credit from Turbo Tax for college tuition?

[VictorW9]

Which of the two credits are you claiming? American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit?

If it is the AOTC make sure that you don't have any scholarship or grants in your 1098-T that exceeds the tuition amount in box 1.

[cturner216]

It does not. The tuition is higher than the scholarship amount on our 1098-T. Any other ideas?

It just doesn't make sense to me that we see no adjustment on the amount we owe based on these entries. We have two kids in college so have two separate 1098-T forms we report. 

[VictorW9]

So, you are claiming the AOTC for both kids, right? Ensure you answer the due diligence questions fully and appropriately. You may want to go over the questions again for each 1098-T. If the details on the 1098-T are not fully entered into TurboTax, the credit will not be given.

[cturner216]

It asks if we've taken the AOTC in prior years. We answer No, as that's the correct answer but it never asks if we will take it this year. Should that be an automatic assumption? I work through all the education questions and get to the end and it states we are not eligible but given the guidelines it seems it should apply. 

[NCperson]

are you using the online or desktop version? 

[cturner216]

We have the desktop version - purchased the disc at Costco and downloaded it. 

[NCperson]

somewhere you have answered a question incorrectly..... Go to Forms View and click on each child..... and review the response to each question.  Also, there is an indented line for each student (or there should be- and THAT may be the issue); review the response to each question there as well. 

[lacampson]

My son was in a graduate program in 2019 and graduated in 2019. He is a dependent on my tax returns. On my federal return the tuition fee was accepted and got a $2000 credit. My state return was rejected because of tuition fees, I checked that he was not an undergraduate and the tuition was not a deduction. I can't remove it because my federal return was filed first and my state did not have any errors before I filed. What do I need to do to file my state return? 

[DavidS127]

What rejection code was reported for the state return, and what is the state that was rejected?