Question

Claiming Education credit AND I-bond interest creit

Forum|Forum|1 year ago
March 22, 2025
1 reply
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I am using TT Desk Top. I have higher education expenses on my 1098-T and trying to use some of the expenses for I-Bond interest exclusion and some for Life Long Learning credit.

I enter I-Bond interest information followed by education expenses. This screen says that "Education expenses you enter here can't be reused to calculate an education deduction or credit. To maximize your refund, only enter expenses here which are not used to calculate an education deduction or credit.".

Now I can use some of my 1098-T expenses here.

But under "Deductions ands Credit"/"Expenses and Scholarships (1098-T)", TT asks for data in various 1098-T boxes. So, I don't think there is a way for me to split the expenses and only add some expenses here and remaining for I-bond interest exclusion. Since one should not be using the same expenses for bond interest exclusion and LLC (so called double dipping), how do I split the expenses between these 2? My expenses are more than enough to cover both.

Any ideas ?

Thanks.

AmyC

You only need $4,000 of qualified tuition and expenses to claim the full amount of education credit. The rest of the bond interest can be deducted on form 8815.

For example, 1098-T has tuition of $20,000. Only $4,000 goes on the 1098-T and $16,000 can go to the bonds. No double dipping.

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V

vs16Author

Thank you AmyC.

I was able to find a way to update the adjustment...

When I tried to update the education expenses directly on form 8863 line 10, TT asked me to update it in student info worksheet. In this worksheet, Part X is about bond information. Since I already provided the information when I added I-Bond interest under 1099-INT, I was expecting that TT will pick up data from there but student worksheet Part X was empty. Once I added the bond proceeds in Part X, TT auto filled rest of the information which was then reflected in form 8843. So, I think this is what I needed to do. Let me know what you think.

AmyC

Impressive! Your forms show the education credit and the rest of the I bond excluded from the other expenses, you have succeeded! Yes, part X is key, I have added that to my notes to mention next time I answer someone else in your spot. Have a great year!

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