How do I claim the Lifetime Learning Credit when filing digitally through TurboTax/FreeTaxUSA?
So I'm trying to get all my tax stuff in order early this year and I'm a bit confused about the Lifetime Learning Credit. I took some night classes at the community college last year to improve my job skills and I know I qualify for this credit. I usually file my taxes through free online softwares like TurboTax or TaxSlayer or FreeTaxUSA. How do I claim the Lifetime Learning Credit when filing digitally? I see the IRS website lists that I have to attach Form 8863 to my 1040, but how do I actually do that with the online software? Do I need to fill out Form 8863 separately and then somehow upload it, or does the tax software walk me through it automatically? This is my first time claiming any education credits so I'm not familiar with the process. I have my 1098-T from the college showing I paid about $4,200 in qualified expenses. Any help would be greatly appreciated!
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Oscar O'Neil
Don't worry about having to separately fill out and attach Form 8863! All the major tax software platforms (TurboTax, TaxSlayer, FreeTaxUSA) handle this automatically for you during the filing process. When you're going through the software, there will be a section about education expenses or tax credits. The software will ask you questions about your education expenses and will prompt you to enter information from your Form 1098-T. As you answer these questions, the software is actually filling out Form 8863 behind the scenes. Once you get to that section, you'll need to: 1. Indicate you had education expenses 2. Enter the information from your 1098-T (school name, EIN, amount paid) 3. Answer questions about whether you're a full or part-time student 4. Confirm you're eligible for the Lifetime Learning Credit The software will calculate the credit amount (up to $2,000, based on 20% of up to $10,000 in qualified expenses) and automatically include Form 8863 with your return. No need to separately create or upload anything!
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Sara Hellquiem
•Thanks for the info! One question though - does it matter which tax software I use? I've heard TurboTax charges extra for education credits but FreeTaxUSA doesn't. Also, do I need my school's EIN or can I just enter the school name?
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Oscar O'Neil
•Different tax software platforms have different fee structures. TurboTax typically requires upgrading to a paid version to claim education credits, while FreeTaxUSA includes Form 8863 in their free federal filing (though state filing costs extra). TaxSlayer's pricing falls somewhere in between, so shop around for the best deal if cost is a concern. You will definitely need your school's EIN (Employer Identification Number) which should be listed on your 1098-T form. Tax software requires this information to properly complete Form 8863, as the IRS uses it to verify your educational institution is qualified. Always enter both the school name and EIN exactly as they appear on your 1098-T to avoid processing delays.
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Charlee Coleman
Just wanted to share my experience using https://taxr.ai for handling education credits like the Lifetime Learning Credit. I was confused about claiming these credits last year and kept getting different answers online. I uploaded my 1098-T to taxr.ai and it helped me understand exactly what qualified expenses I could claim. It even caught that my school had reported the amounts in Box 1 instead of Box 2, which apparently makes a big difference in how you report it! The tool explained how the Lifetime Learning Credit would be calculated based on my specific situation. The best part was that it gave me step-by-step instructions for entering everything correctly in FreeTaxUSA, which is what I ended up using. Saved me a ton of time figuring it out on my own.
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Liv Park
•Does taxr.ai work with all tax software or just FreeTaxUSA? I've been using TaxAct for years and don't really want to switch, but I need help with education credits.
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Leeann Blackstein
•I'm skeptical about these tax tools. How does it actually work? Do you have to pay for it? Sounds like you could just Google the same info for free...
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Charlee Coleman
•The instructions it provides work with any tax software - TurboTax, TaxAct, FreeTaxUSA, H&R Block, etc. It's more about understanding how to properly categorize your expenses and which boxes to check rather than software-specific instructions, though it does give tips for the most popular platforms. It's a document analysis tool that reviews your specific tax documents and explains what they mean for your tax situation. Unlike generic Google searches that give general information, it's analyzing your actual forms. I was really impressed because it caught that my school reported incorrectly on the 1098-T, which generic advice wouldn't have spotted. That alone saved me from potentially making a big mistake.
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Leeann Blackstein
I was super skeptical about taxr.ai when I saw it mentioned here, but I was struggling with my education credits and decided to give it a try. Wow - total game changer! I uploaded my 1098-T and financial aid statements from my MBA program, and it immediately identified that some of my expenses weren't qualified because they were covered by tax-free grants. The instructions were crystal clear about how to claim the Lifetime Learning Credit in TurboTax (which is what I use). I was able to follow along exactly without guessing, and it even explained which expenses I should include and which ones I shouldn't. Would have made a $1,200 mistake without it since I was going to claim expenses that weren't actually eligible. Definitely using it again next year!
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Ryder Greene
For anyone struggling to get answers about the Lifetime Learning Credit from the IRS directly - I tried calling them for three days straight but couldn't get through. Then I found https://claimyr.com and used their service to get a callback from the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had specific questions about claiming education expenses from two different schools on one Form 8863, and I needed to speak with someone actually at the IRS. Within about 40 minutes of using Claimyr, I got a callback from an IRS agent who walked me through exactly how to handle multiple 1098-Ts in my tax software. Saved me hours of waiting on hold and the confusion of trying to interpret IRS publications on my own!
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Carmella Fromis
•How does this Claimyr thing actually work? Like, are they just calling the IRS for you? Couldn't you just keep calling yourself until you get through?
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Theodore Nelson
•Sounds like a scam to me. Why would the IRS give preferential treatment to calls from this service? I'm not giving my info to some third-party just to talk to the IRS. I'll wait on hold like everyone else.
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Ryder Greene
•They use technology to navigate the IRS phone system and secure a place in line for you. Once they reach an agent, they transfer the call directly to your phone. It's like having someone wait on hold for you, but it's automated. You absolutely could keep calling yourself, but personally I wasted hours trying that approach. I called at different times on different days and never got through - just kept getting the "high call volume" message and disconnected. Using Claimyr, I got through on my first attempt without having to sit on hold or repeatedly redial.
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Theodore Nelson
Ok I have to eat my words here. After struggling for over a week trying to get through to the IRS about my education credits, I broke down and tried Claimyr. I was 100% sure it was going to be a waste of money. But damn, it actually worked. Got a call back from an IRS agent in about 35 minutes. Asked specifically about how to handle my Lifetime Learning Credit when I had both employer reimbursement AND a scholarship. The agent walked me through exactly how to report it correctly on Form 8863. For anyone needing to actually speak to a human at the IRS rather than just guessing at how to enter things in your tax software, it's worth it. Never thought I'd be recommending something like this, but it saved me from making a costly mistake on my return.
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AaliyahAli
Has anyone claimed the Lifetime Learning Credit for online courses that aren't from a traditional college? I took some programming bootcamp classes that were about $7,000 and got a 1098-T, but I'm not sure if they qualify?
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Ellie Simpson
•For Lifetime Learning Credit, the educational institution needs to be eligible to participate in federal student aid programs. Many coding bootcamps don't qualify because they aren't accredited in the right way. Check if your bootcamp has a Federal School Code and if they're on the Federal Student Aid Code List. If they gave you a legitimate 1098-T that's a good sign, but double-check their eligibility on the IRS website just to be sure!
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AaliyahAli
•Thanks for that info. I just checked and my bootcamp does have a Federal School Code. I was confused because it's not a traditional 4-year college, but apparently they do qualify for federal aid programs. Guess I'll go ahead and claim it!
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Arjun Kurti
Quick tip that saved me last year: When using FreeTaxUSA for the Lifetime Learning Credit, make sure you enter the amounts from your 1098-T correctly. The software will ask about Box 1 (payments received) and Box 2 (amounts billed). My school only filled out Box 1 and left Box 2 empty, which confused me. Watch out for this! You should use the amount that represents what you actually paid during the tax year, regardless of which box it's in. Also remember that the Lifetime Learning Credit is 20% of your eligible expenses up to $10,000, so max credit is $2,000. But your income might reduce this - starts phasing out at $80,000 for single filers.
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Raúl Mora
•This Box 1 vs Box 2 thing tripped me up too! My school put stuff in both boxes and I had no idea which one to use. Does anyone know the difference?
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Arjun Kurti
•Box 1 shows amounts the school actually received during the calendar year, while Box 2 shows amounts that were billed for qualified expenses during the year. The difference matters because of timing - sometimes you might pay in December for classes starting in January, or pay in January for classes that started the previous December. You generally want to claim the credit in the year you actually paid the expenses, which would align with Box 1. However, you should look at both boxes and understand what educational expenses they represent. If there's a big difference between them, you might need to figure out exactly when you made payments and what academic periods they were for.
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