What happens to the $1000 refundible portion of the american opportunity tax credit if I get no refund and owe tax?

[jrhorto]

I see the $1500 credit in Turbotax but I don't see where the other $1000 is on forms of the $2500 of which I am eligible.  I do not see any explaination for this on the TurboTax web site for which make sense to me.

[HelenaC · Accepted solution]

The $1,000 refundable American Opportunity Credit is on form 1040 Line 68. It would get deducted from the tax you owe. It's like getting the $1,000 in hand and turning around and paying your taxes owed with it.