Why is this confusing question shown on my TurboTax return?

Wait, so if I already graduated but took a few classes this year to improve my job skills, would I still qualify for one of these credits? My company didn't reimburse my courses but they were related to my field.

For classes taken to improve job skills after graduating, you would likely qualify for the Lifetime Learning Credit rather than the American Opportunity Credit. The Lifetime Learning Credit doesn't require you to be pursuing a degree or enrolled half-time, making it perfect for career enhancement courses. The Lifetime Learning Credit is worth up to 20% of the first $10,000 in qualified education expenses, so potentially up to $2,000. Unlike the American Opportunity Credit, it's non-refundable, meaning it can reduce your tax liability to zero but won't generate a refund beyond that. Your courses would qualify as long as they were taken at an eligible educational institution and were job-related.

Does it work if you have multiple 1098-Ts? I'm taking classes at two different schools and have separate forms from each. TurboTax seems confused by this situation.

This sounds like an ad. Does it actually tell you anything that isn't in the TurboTax explanations already? And can it handle more complex situations like being claimed as a dependent by parents while also having your own income?

Yes, it handles multiple 1098-Ts really well! You can upload all your forms and it combines the qualified expenses properly. I know someone who was taking classes at both a community college and state university, and it handled both forms correctly. For your question about the value beyond TurboTax explanations, it's much more specific and personalized. TurboTax gives general guidance, but taxr.ai actually analyzes your specific situation and documents. It helped me understand that some of my course fees qualified as required course materials even though they weren't labeled as "books" on my receipt. As for dependent situations, it has a specific section that walks through dependent education credits and who should claim them based on your specific circumstances.

How exactly does this work? I thought it was impossible to get through to the IRS. Do they just keep calling for you or something?

This sounds like complete BS. No way you're getting through to the IRS in 15 minutes when their own reported wait times are hours or days. Sounds like you're just promoting some scam service.

It works by using a priority connection system that navigates the IRS phone tree and waits on hold for you. When an agent is about to pick up, it calls your phone and connects you directly. It's basically like having someone wait on hold so you don't have to. I was skeptical too! The IRS wait times can be ridiculous. That's why I thought it was worth mentioning - because it actually worked when I had tried for days on my own with no success. The longest part of the process was actually explaining my question to the IRS agent once I was connected. It's definitely not a scam - they don't ask for any tax info or personal details beyond your phone number to call you back when an agent is reached.

Thanks for bringing this up! My parents and I already discussed this - they aren't claiming me as a dependent this year since I provided more than half of my own support. I've been working almost full-time hours at the restaurant plus some gig work on weekends. So I should be able to claim my own education credits, right? Is there anything specific I need to document to prove I supported myself in case of an audit?

Yes, if you provided more than half of your own support and your parents aren't claiming you, then you're absolutely right to claim your own education credits on your return. This is actually the ideal situation for maximizing your benefits! For documentation, keep records of your income (pay stubs, bank statements showing deposits), housing payments (rent receipts), and major expenses throughout the year. Also track any financial aid, scholarships, or loans in your name. You don't need to submit these with your taxes, but having this documentation is important if you're ever questioned about your independent status. A simple spreadsheet showing your total income versus your total expenses for the year can be really helpful to demonstrate you provided over 50% of your own support.

I had the same issue last year! Turned out the Premier version was correctly applying some course material expenses that the Deluxe version missed. Worth double-checking all the education expense sections regardless of which version you use.