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Level 2
posted Mar 28, 2023 8:45:34 AM

Tuition Deduction

I received Form 1098-T for my daughter's college tution.

She is full time student, 21 years old, I am claiming her as dependent.

I am receiving message:

 

"Here is why you may not qualify:

 

*Someone else can claim you as a dependent.

or

*There were no net qualified education expenses."

What am I doing wrong??

 

0 8 1040
8 Replies
Level 15
Mar 28, 2023 8:53:21 AM

Did she have scholarship greater than qualified education expenses?

Level 2
Mar 28, 2023 9:01:48 AM

No.

I've not even entered the amount of tuition expense.....

Employee Tax Expert
Mar 28, 2023 9:07:45 AM

I think you need to review your personal information section. If it is saying someone else can claim you as a dependent, you must have checked this box in the personal information section. I assume no one is claiming you as a dependent.

 

Secondly, when it says there were no net qualified education expenses, I assume this is because, on the 1098-T, the amount in box 5 is more than the amount in box 1, meaning she had grants and scholarships that covered her tuition.

 

If she qualifies for the American Opportunity Tax Credit, you will be asked to include additional expenses for items such as books. You likely didn't get these questions since you are currently not qualifying based on your incorrect dependent status.

 

To be eligible for AOTC, the student must: 

  • Be pursuing a degree or other recognized education credential 
  • Be enrolled at least half-time for at least one academic period* beginning in the tax year 
  • Not have finished the first four years of higher education at the beginning of the tax year 
  • Not have claimed the AOTC or the former Hope credit for more than four tax years 
  • Not have a felony drug conviction at the end of the tax year 
  • *Academic Period can be semesters, trimesters, quarters or any other period of study, such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period. 

 

More information can be found here: 

Education Credits 

American Opportunity Credit 

Level 2
Mar 28, 2023 9:20:11 AM

@CatinaT1 

 

I rechecked and no one is checked as someone else's dependent.

I do not get an opportunity to enter the amounts from form 1098-T

Level 15
Mar 28, 2023 10:01:55 AM

Until you enter your expenses the program can’t calculate any credit. 

Employee Tax Expert
Mar 28, 2023 10:02:13 AM

That's very odd because the fact that it tells you the disqualification is due to someone else can claim you as a dependent. In Personal Information, this is the question I am referring to:

 

The "or" option for disqualification is not applicable if you have not entered a 1098-T yet, so it has to be in this question.

 

What is your filing status? 

 

Under Deductions and Credits, do you show this option?

 

 

I'm not sure where you would have seen the screen you refer to that shows you are ineligible if you have not entered a 1098-T?

 

Level 2
Mar 28, 2023 12:37:05 PM

Married filing jointly

Level 2
Mar 28, 2023 12:47:14 PM

Found it!

 

Prompt to edit Student was not clear to me that was where you enter expenses.