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So I have some bad news for you guys.If you have been taking advantage of education tax credits such as the American OpportunityTax Credit or the Lifetime Learning credit, chances are you (or your tax preparer) havebeen calculating it all wrong.A few weeks ago, we posted a video on tax deductions for college students and in thecomments we got a lot of questions about the 1098-T and how you use the 1098-T to calculateyour tax credit.So this video is a follow-up to that video.So, if you haven t seen that video, go watch that one first and come back to this one.It s time to clear the air and learn how this is supposed to go.So here s how a lot of people think the credit works.You put in the information from your 1098-T, subtracting your reported scholarships andgrants in box 5 from the amount listed in either box 1 or box 2.That should give you the net amount of qualified expenses for which you can claim either theAmerican Opportunity Tax Credit and/or Lifetime Learning Credit, right?WRON

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