This article tells you what to do if data is entered on the Credits > Education/Tuition (1098-T/8863) screen, but ProConnect fails to populate the American opportunity credit on Form 1040, line 29 or for tax year 2020 and prior, the Tuition and fees deduction on Schedule 1, Line 21.
Tuition and Fees Deduction (Form 8917) has been repealed starting in Tax Year 2021.
American Opportunity Credit & Lifetime Learning Credit (Form 8863)
- Expanded Lifetime Learning Credit to phase outs that mirror American Opportunity Credit in 2021
- MAGI phase out range --$160,000 --$180,000 married filing joint; $80,000 --$90,000 other filers
Common errors and how to fix them
- If the Taxpayer or Spouse is the student:
- Check that the entry in the 1=Taxpayer, 2=Spouse field matches the entry in the Social Security Number field.
- If they don't match, remove the SSN.
- The First Name and Last Name fields shouldn't impact the calculation, but information in either field can be removed so long as the taxpayer or spouse is the student.
- If a Dependent is the student:
- Check if there is an entry in the 1=Taxpayer, 2=Spouse field and an entry in the Social Security Number field.
- If the Social Security Number (SSN) doesn't match the Dependent, remove the 1 or 2 in the 1=Taxpayer, 2=Spouse field.
- Complete the First Name and Last Name fields.
- Check that there is a Dependent entered in the General > Dependents section.
- The student's SSN must match the SSN entered in the General > Dependents section.
- Check the last field, 1=delete this year, 2=delete next year, in the Credits > Education/Tuition (8863) screen. An entry of 1 in this field will also cause the credit to not calculate.