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Level 2
posted Apr 17, 2022 6:11:25 PM

Turbo tax won't show me form 8863 though it says I qualify for both educational credits

I meet all the criteria for education credit. I have 1098-T with 44,000+ tuition an only 11,750 as scholarship. TT walks me thru and tells me that I qualify both for American Opportunity and lifetime credit. But then it comes back and says you don't qualify.

 

it does not generate a form 8863 form at all. How do I make it happen? 

 

Please help!

0 3 505
3 Replies
Employee Tax Expert
Apr 17, 2022 8:02:55 PM

Did you go through the ENTIRE education interview? 

After entering the 1098-T go through Other Education Expnses

Scholarships/Grants

Education Information

 

Is your income below the limits for the credits? 

 

What are the income limits for AOTC?
To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).

 

What are the income limits for LLC?
For TY2020, the amount of your LLC is gradually reduced (phased out) if your MAGI is between $59,000 and $69,000 ($118,000 and $138,000 if you file a joint return).
You can’t claim the credit if your MAGI is $69,000 or more ($138,000 or more if you file a joint return).

 

 

Level 2
Apr 17, 2022 9:31:35 PM

Thank you.

 

Yes, I did go all the way till filing. It's actually for my daughter who is a college freshman. Her income was $6,600.

 

Turbo tax says - you qualify but then comes back saying no qualification. I was able to find the form 8863 but in the lower portion, it takes lower of $2,000 and $0 and comes back with credit of $0.

Employee Tax Expert
Apr 18, 2022 5:22:17 AM

Is she a dependent? 

If you claim her, you should be using her 1098-T to apply for a credit. 

IRS Pub 970