Students who are pursuing a course of study that will eventually lead to a degree and are in their first four years of school—or those who are paying for their educations—may be eligible to claim the American Opportunity credit. The credit covers the tuition payments you make plus the cost of purchasing the books and supplies you need, as long as you maintain at least half-time status.
To get the AOTC, you need to go the education section of the TurboTax interview. If you have a 1098-t from your school, enter those boxes when asked. If you do not have a 1098-T, you can enter the amounts you spent on qualified expenses. See below for "qualified education expenses."
These expenses qualify, as long as they are required to enroll in or attend a qualified educational institution:
- Tuition, if paid to the institution
- Student-activity fees, if paid to the institution
- Books, supplies, and equipment, if required to be purchased from the institution (Lifetime Learning Credit)
- Books, supplies, and equipment, regardless of where purchased (American Opportunity Credit)
Fees paid for non-credit courses and sports (or similar activities) don't qualify unless:
- The course or activity is included in the student’s degree program, or
- The course helps the student acquire or improve job skills (Lifetime Learning Credit only)
These expenses are not considered qualified education expenses for either credit:
- Tutoring
- Housing, room and board
- Insurance, including student health fees
- Medical or dental expenses
- Transportation
- Entertainment, babysitting, and other personal expenses
To enter education expenses as well as financial aid in TurboTax Deluxe:
Click My Account (Top right of your screen).
Select Tools.
In the pop up window, select Topic Search.
In the search bar, type in 1098-t
See it highlighted, click GO, and follow the prompts
