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Only part of federal educational expenses transferred over to Kentucky

Why did only part of my federal educational expenses transfer over to my Kentucky educational expenses?  I am receiving the American Opportunity Credit.  My understanding is that you enter the exact same expenses on both?  Do I manually type in the exact federal educational expenses into the Kentucky block?  It only transferred $350 instead of the correct $2,797.43. 

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3 Replies
CatinaT1
Expert Alumni

Only part of federal educational expenses transferred over to Kentucky

For Kentucky, the credit is limited to 25% of the allowable federal credit, with a maximum amount allowed of $625 for each qualifying student.

 

Everything from the federal return will carry over to the Kentucky return. You do not want to enter anything again.

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Only part of federal educational expenses transferred over to Kentucky

Thank you so much for your reply! 

 

Here is what my screen says inside of the KY taxes:  "Federal American Opportunity Credit Summary"

On your federal return STUDENT'S NAME qualified for an American Opportunity Credit.  EDIT Student's info and enter the amount of qualified KY expenses you paid and whether or not STUDENT completed the first 2 year of post-secondary education before January 1, 2022. 

 

On a similar question from May 31, 2019 a person reported that no amount at all was there.  DanielV01, wrote, "It's true that Turbo Tax does not carry this over automatically, and there's a reason why.  For the KY credit, you need to answer questions about if the student goes to a KY school, and the credit may be claimed only for undergraduate studies.  If you qualify, though, you only need to enter the amount of expenses used to calculate the federal credit."

 

My scenario was slightly different because it carried a portion of the federal educational expenses over onto that screen.  

 

I completely understand about the 25% of the allowable federal credit.....but my understanding is that you claim the same exact expenses on federal and state?  So wouldn't you enter the same educational expenses on both the federal and state on that screen?

CatinaT1
Expert Alumni

Only part of federal educational expenses transferred over to Kentucky

Yes,  you would claim the same expenses. It is true that it has to be at a KY school, so that may be why it didn't carry over. It doesn't make sense why it would carry over some and not all. 

 

I would change the number to include the total eligible expenses.

 

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