TT tells me, "You can't claim an education tax break." Why? I did in 2020.
In 2020, on Schedule 3, line 7: "Education credits from Form 8863, line 19" was $3,000. (This also appears on the 1040, line 20). Also in 2020, on the 1040, line 29: "American opportunity credit from Form 8863, line 8" was $2,000.
(Amounts below have been mildly obfuscated)
2020:
AGI: $125,000
Child A (BOTH CHILDREN are in year 0-3 of their normal college careers in both 2020 and 2021)
1099-Q (529 withdrawal; I'm the beneficiary): $16,000
NO WITHDRAWALS FROM ESA's (Coverdell)
1098-T's (from two colleges): $31,500 - $6,000 (scholarship)
Child B
1099-Q (529 withdrawal; I'm the beneficiary): $12,000
NO WITHDRAWALS FROM ESA's
1098-T's (from two colleges): $40,000 - $36,500 (scholarship)
2021:
AGI: $135,000
Child A
1099-Q (529 withdrawal; I'm the beneficiary): $5,000
ESA: multiple withdrawals were made, adding to about $35,000, but the child is the beneficiary, so its data wasn't entered in TT
1098-T's (from just one college): $47,500 - $5,000 (scholarship)
Child B
1099-Q (529 withdrawal; I'm the beneficiary): $3,000
ESA: multiple withdrawals were made, adding to about $25,000, but the child is the beneficiary, so its data wasn't entered in TT
1098-T's (from just one college): $44,000 - $36,500 (scholarship)
