All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎01-18-2018
Accepted Solution

Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

I received a 1098-T from my school that shows I was billed $860 for 2017, and received $860 in grants and scholarships.  These grants and scholarships were in the form of tax-free employer provided tuition assistance (they cover 100% of tuition costs).

 

In years past I've entered this information into the H&R Block online software and it's told me I don't qualify for either the American Opportunity credit or the Lifetime Learning credit since none of the cost was paid by me.  This year I input the same thing into the H&R Block site and it's telling me I qualify for a $172 credit under the Lifetime Learning Credit, even though there is a screen that specifically asks how much of the $860 in grants and scholarships were in the form of tax-free employer provided tuition assistance.

 

Is this a bug in the H&R Block software?  Since all my tuition costs were paid tax-free by my employer it seems like unless the law changed I should not be getting this credit.  Thanks!

 

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

Hi jeffrey204,

 

 

 

Welcome to the H&R Block community.

 

Unless you paid for some books or other required costs out of pocket on top of using the tuition assistance you are not due any education credit.

 

If you paid for books and/or other required costs out-of-pocket in addition to the tuition assistance that could be where the credit is coming from.

 

They are still updating the software though, so if this is a software issue it may be corrected with the next update.

 

In the meantime you might want to go back and double-check your entries just to be sure you didn't mistype anything.  At least that way you can eliminate a typo as the culprit.

 

 

 

Louis,
Senior Tax Advisor (Tampa, FL)

Pioneer
Posts: 2
Registered: ‎01-18-2018

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

Thanks for the reply LouisH.  I did go back and double check all my entries.  It just looks like the software isn't subtracting the tax-free employer tuition assistance from my qualified education expenses like it should, since the tuition from box 2 of the 1098-T were the only expenses I entered.  If the software doesn't update to fix this I'll just delete the section altogether to make sure it doesn't give me the credit.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

You're quite welcome.

Highlighted
Pioneer
Posts: 1
Registered: ‎01-30-2018

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

I am having this exact challenge. My husband is AD and had $8,010 billed as indicated in Box 2 of for 1098-T.  We've inputted his Scholarships or Grants as $8,010 as provided in Box 5.  The H&R Block online system is calculating that he qualifies for $1632 in Lifetime Learning Credits.

 

H&R Block might want to look at this as it is misleading. I'm going to go back and delete our entries as well.

 

 

Member
Posts: 1
Registered: ‎02-22-2018

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

I am having the same problem.  My son gets undergraduate tuition waiver as part of his employment with the university.  If I answer the questions correctly, it takes the amount over $5,250 and uses it to calculate the American Opportunity Credit along with the tuition that he did pay.  He should get credit for his tuition and books for classes they don't cover.  So on the "Grants, Scholarships and Aid" page, I just put zero in the place of the question of how much is Employer Tuition Aid?  Has anyone heard if this will be fixed by an update?

 

 

Member
Posts: 5
Registered: ‎02-22-2018

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

But I have opposite problem.

 

I have paid $5267 tuition for the year 2017 and other expenses were $742. I got a scholarship of $4000.

 

While I entered all these info in my HR BLock online account, I got $94 credit as Life Learning Credit. I did not get credit for my tuition paid. But When I tried Turbo Online I got a tuition deduction of $1522 credit. I was not aware of this until I submit my tax return via HR Block this morning.

 

Now, my Fed tax is accepted by IRS. How Can I claim that tuition things? Total refund amount is $425 more in turbo when that tuition amount is credited. 

 

Thank you for your help!!

Member
Posts: 5
Registered: ‎02-22-2018

Re: Lifetime Learning Credit and Tax-Free Employer Tuition Assistance

Is this the reason?

 

"This deduction was initially disallowed by Congress but recently added back in as allowable.  We expect the IRS to be fully updated for this around the 3/2.  Please try again after that."

 

 

https://ttlc.intuit.com/questions/4288710-how-can-i-get-turbotax-to-fix-tuition-deduction-on-form-89...