If I claim tuition my refund goes down. Why?

Answer

In an effort to get you as many credits possible, TurboTax automatically claims any credits that it thinks you are eligible for. If you worked, but have a low income, TurboTax will claim the Working Income Tax Benefit (WITB), which is a refundable tax credit for people who work, but don’t make very much. However, students are usually not eligible for this credit, so when you tell TurboTax that you have tuition, then the WITB is removed if you no longer qualify for it.

 

To make sure that TurboTax knows that you don’t wish to apply for this credit:

Click “Find” and search for “Working”, then select “Working Income Tax Benefit” from the list and click on the “Go” button.

Select “No” next to the question “Do you want to claim the Working Income Tax Benefit?”

Click the “Continue” button to save.


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