How to enter 1098-t to claim AOTC

[DoninGA]

To enter, edit or delete Education Expenses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Education
• On Expenses and Scholarships (Form 1098-T), click on the start or update button

Or enter education expenses in the Search box located in the upper right of the program screen. Click on Jump to education expenses

[vrama]

I can do that but in order to claim AOTC by parent, I need to move some of the scholarship amount to income, how do I get TT to do that

[vrama]

Do I move amount to 1099-misc section  even though I don't have a 1099-misc from the university?

[DaveF1006]

If your scholarship amounts exceed your expenses, Turbo Tax will declare the excess amount as income. You would not need to do anything. Don't do anything with 1099 MISC!!

@vrama

[vrama]

Thanks, now I want to move some of the scholarship to income to claim the education credit. How would I do that?

[RaifH]

You may still be eligible for an Education Credit if you follow these steps:

1. In the Federal > Deductions & Credits section of your return, scroll down to Education and click Show more. 
2. Click Start/Revisit next to Expenses and Scholarships (1098-T).
3. Enter your 1098-T. Under Your Education Expenses Summary, click Edit
4. Click Edit next to Scholarships/Grants (for all schools)
5. The first screen should be correct based on your 1098-T. Click Continue.
6. Answer No to Did your Aid Include Amounts Not Awarded for 2021 Expenses?
7. If you used your scholarship for anything besides your tuition, answer Yes to Did you pay for room and board with a scholarship or grant? Any of the listed expenses that do not qualify for the education credit can be paid with scholarship money unless your scholarship requires it to be spent on tuition.

You will not get an Education Credit unless you paid for tuition out-of-pocket, which means your scholarship would have to have been used on these other expenses. Once you have leftover tuition expenses ($4,000 to maximize the American Opportunity Credit) and you are otherwise eligible for the credit, TurboTax will apply it to your return by making a portion of your scholarship taxable.