American opportunity tax credit for one in college, add second child for llifetime learning credit to watch amount of the AOTC decrease! The combined total drops $300

[burnellrose]

So AOTC is up to $2,500.  first child qualifies for a credit of $2,487.  (dont understand why not the full $2,500)   But  When I add second child and try to get a $200 learning credit; the combined total should be $2,700.  But tax act decreased the total to $2,512.   Soemthing seems screwed up.  

[Anita01 · Accepted solution]

The total didn't decrease, it increased from 2487 to 2512.  Lifetime learning is what is called a nonrefundable credit, meaning you can only take it until your tax liability is reduced to zero.  Once you owe no more tax, you get no additional credit.  Most ($1500)of the AOC is also nonrefundable