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posted Feb 24, 2019 5:14:08 PM

Form 8863

There appears to an error in Turbo Tax Premium, Form 8863, Line 23. Even though I answered yes, the American Opportunity Credit has been claimed in the last four tax years, Box "No" is checked on the form. How do fix this error? I could easily manually change Line 23, 24, and 25 but I can't find where I can manually change the form. Has anyone else experienced this?

0 4 1152
4 Replies
Not applicable
Feb 14, 2020 3:34:13 PM

In case this applies to you...

We had the same issue and had to look at the IRS instructions for Form 8863 line 23 (page7 )

https://www.irs.gov/pub/irs-pdf/i8863.pdf

"If the American opportunity and Hope scholarship credits have been claimed for this student for 3 or fewer prior tax years, check “No.” See Student qualifications, earlier. "

If you go by that, then a "no" answer may be correct.

Expert Alumni
Feb 14, 2020 5:58:18 PM

Please go back through the interview for the education section. 

There is a screen that asks if the American Opportunity Tax Credit has been taken. If you select "Yes" a drop-down appears and you then need to enter the number of times. Perhaps you did not see that the first time through. 

Not applicable
Feb 14, 2020 8:27:36 PM

Hi KrisD15,

yes, we did see that and entered 1 as needed.  But TurboTax continued to make “no” for line 23.  There was no way to have the questions answered correctly but to change line 23 to “yes”. That is why we searched the IRS doc.  If we read it correctly, then TurboTax is doing it correctly....if not, then it’s a bug in TurboTax.

Expert Alumni
Feb 15, 2020 12:40:50 PM

"No" is the correct answer if the credit was not taken all 4 years already. 

The wording is :

"Has the Hope Scholarship Credit or American opportunity credit been claimed for this student for any 4 tax years

before 2019?

Yes — Stop!

No — Go to line 24."

 

Confusing, but the IRS wrote it. 

Same as saying "Has the credit been taken 4 times already?" 

In your case, "No".