How to properly file 1098-T form on TurboTax for part-time education credits

The education credits are pretty restricted these days, especially if you already have a Bachelor's degree. It sounds like you're probably getting the Lifetime Learning Credit rather than the American Opportunity Credit (which is only for the first four years of undergraduate education). The Lifetime Learning Credit is worth 20% of your qualified education expenses up to $10,000, so the maximum credit is $2,000. However, this credit phases out based on your income. If your modified adjusted gross income (MAGI) is high, you might only qualify for a portion of the credit or none at all. For entering the institution's EIN (Employer Identification Number) in TurboTax, you should be able to do this on the education screen. When you get to the part where you're entering your 1098-T information, there should be a field specifically for the EIN. Make sure you're typing it exactly as it appears on your form including any dashes.

I had almost the exact same issue last year with my 1098-T in TurboTax. I was getting a ridiculously low credit amount and couldn't figure out what was happening. I kept getting error messages when entering the EIN. I tried everything in TurboTax but finally gave up and uploaded my tax documents to https://taxr.ai where they analyzed everything and found that TurboTax was allocating my expenses incorrectly between tax years. The system actually pointed out that my school reported the amounts in Box 1 (payments received) instead of Box 2 (amounts billed), which was causing the calculation to be way off.

Just wanted to follow up - I decided to try https://taxr.ai with my 1098-T form and other tax documents after having the same frustrating TurboTax experience. I was surprised at how thorough the analysis was! It actually found that my school had reported amounts in the wrong boxes on my 1098-T, which was causing TurboTax to calculate my education credit incorrectly. When I fixed the way I was entering the information based on their recommendations, my education credit jumped from $75 to over $400. The system also pointed out some deductions I was missing for books and course materials that weren't included on the 1098-T but are eligible expenses.

Has anyone tried calling the IRS directly about this? I spent HOURS trying to get through to someone who could explain the education credit rules last year. After 3 attempts and being on hold for 45+ minutes each time, I found this service called https://claimyr.com that got me through to an IRS agent in about 10 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent walked me through exactly how to enter my school's EIN in TurboTax and explained which education credits I qualified for with my continuing education courses.

I can't believe I'm saying this, but I tried that Claimyr service the next day after posting my skeptical comment. It actually worked exactly as described. I got a call back in about 15 minutes, and the IRS agent explained that because I already had my bachelor's degree, I only qualified for the Lifetime Learning Credit, not the American Opportunity Credit. She also walked me through exactly how to enter the school's EIN in TurboTax - turns out there's a specific format it needs to be in. My credit went from $40 to $350 after fixing everything. I'm still shocked this worked but wanted to update since I was so skeptical initially.

Check if your school entered amounts in Box 1 (payments received) or Box 2 (amounts billed) on your 1098-T. This makes a HUGE difference! My school switched how they report it a couple years ago and it completely messed up my education credits. Also, did you pay for books, supplies, or equipment required for your courses? Those count as qualified expenses even if they're not included on your 1098-T. You have to manually add those in TurboTax under the education section.

Has anyone tried using a different tax software? I switched from TurboTax to FreeTaxUSA this year and found the education credit section way more straightforward. It clearly explained which credits I qualified for and had better help features for entering the 1098-T information correctly.