Question

TurboTax won't let me pick my education credit

Forum|Forum|6 years ago
February 2, 2020
1 reply
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American Opportunity Credit will only deduct up to $2,500 but the Tuition Deduction Credit will deduct $4,000 and I cannot choose it manually but it does show me the credits and money I qualified to deduct for each one. It choose for me the American Opportunity credit but I tried manually choosing and it wont let me. Can someone help me please?!

It stresses me out knowing I would be robbed out of an extra $1,500 of possible deduction because TurboTax decided so. I have a good understand of how it works and why it does certain decisions but this is my 6th year using it and decided to purchase the CD option at Costco and it is not flexible with manually choosing different options.

K

KatrinaB48

The Turbotax software gives you the education credit that increases your refund the most. The Tuition and Fees Deduction is a nonrefundable credit and the credit amount depends on your tax. For example, if your tax was $1,000 and you were in the 10% bracket, then your credit amount would be $100. So this type of credit does not directly increase your refund amount. The American Opportunity Credit is a partially refundable credit. Up to $1,000 of this credit directly increases your refund amount and the other $1,500 reduces your tax. It sounds as if you qualified for the maximum amount of education credit available. Please view the TurboTax FAQ as it explains the Tuition and. Fees deduction. This IRS link also breaks down the benefits of the American Opportunity credit.

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G

gkrog2

I know the difference in the Education tax credits. I want to use the Lifetime credit because Rylie is only a part time student this year and won't get the full amount back for the American Opportunity credit. I want to wait and claim it in 2020 when she is full time and can claim the entire amount. How do I change it from the American Opportunity to the Lifetime?

AmyC

I don't get your last screenshot prompt in my TT......

You are on a thread from 5 years ago. The Tuition and Fees Deduction no longer exists. It is either American Opportunity or Lifetime Learning Credit. See What education tax credits are available?

@randsom

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