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Level 2
posted Feb 29, 2024 9:38:21 AM

TurboTax Denies the Lifetime Learning Credit

According to everything I can find I should qualify for the Lifetime Learning Credit. Income of less than $14,000, not a dependent, working toward a degree, payments of more than $2000 on 1098-T. Why does TurboTax say I am not eligible?

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1 Replies
Employee Tax Expert
Feb 29, 2024 9:48:27 AM

Since your income is less than $14,000, you would not be eligible for the  Lifetime Learning Credit because you do not have a tax liability to reduce and this is one of the nonrefundable credits.  

 

This means, that if you do not have a tax liability on line 16 of your 1040 to reduce, you would not be able to get the credit.  Since your income is less than $14,000, your tax liability would be $0, therefore your Lifetime Learning Credit would be $0.  

 

If the amount on line 16 was $1,000, your credit (assuming no other nonrefundable credits) would be $1,000 if you otherwise qualify.  Same if it was $2,000, you would then be able to get the full $2,000 credit.