Tuition Credit not allowed, even though AGI is only $151,787 (under 160K)

[lovetaxes]

I had an easy tax return completed. Diagnostics disallowed a Tuition Credit, stating AGI was over $160K, which isn't correct. Only possibility is that the client had Unemployment and $10,200 credit is what brought AGI below $160K.

Is this a software error? Attempts to resolve via Lacerte Reps (2) totally unsuccessful. Any suggestions out there?

Another stressed tax preparer.

Bob

[IRonMaN]

The unemployment exclusion only affects the taxability of unemployment.  It is ignored for all other computations.

[lovetaxes]

Many thanks IRonMaN. That makes sense and I do accept your solution. Unfortunately, I called Lacerte agents and they couldn't help me at all. 

I think their helpers, although very nice and cordial, are nowhere near as equipped as in the past to respond to questions like this.

Thank God for people like you. I'm glad the season is somewhat close to the end. Touch year.

Stay well,

Bob

[IRonMaN]

You betcha!