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I received a $4000 tuition deduction, but my total federal refund is $0. I have not earned any wages this year nor do I own a home or buisness. Im a 25 full-time student.

Why am i receiving $0 federal refund?

I only have my loans to document. I have no other complicating situations.
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2 Replies
KrisD15
Expert Alumni

I received a $4000 tuition deduction, but my total federal refund is $0. I have not earned any wages this year nor do I own a home or buisness. Im a 25 full-time student.

If you are saying that you have 4,000 in education expenses and that resulted in a "Tuition and Fees Deduction", you should be aware that a deduction is different than a credit. 

A deduction lowers your income, a refundable credit may generate a refund. 

The American Opportunity Tax Credit is a credit, it can increase a refund, even if your tax liability is zero. 

The Tuition and Fees Deduction is a deduction. Since a deduction lowers taxable income, it can lower your tax liability. Since your tax liability is zero, there is nothing for it to be applied to. 

They are both based on Education Expenses but have different requirements. 

 

If someone else can claim you as their dependent (if 25 at the end of 2020 you would be too old to be a qualifying child, but you could be someone's qualifying relative) they could possibly take the deduction if they claim you on their tax return. 

 

Please click here for information from TurboTax on Education Expenses

 

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Hal_Al
Level 15

I received a $4000 tuition deduction, but my total federal refund is $0. I have not earned any wages this year nor do I own a home or buisness. Im a 25 full-time student.

You need to provide more info.  Did you really claim a $4000 deduction on line 21 of Schedule 2 or did apply $4000 of tuition in claiming a tuition credit on line 27 of form 8863?

 

If you did not have any income, a deduction will do you no good because then you have no taxable income to reduce (claim a deduction from). 

 

Most tax credits will also not help you as no income means no income tax to tax a credit against. 

 

But,  if you are a student, over age 23, and can not be claimed as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit (AOTC).  You must be at least a half time undergraduate (or eligible trade school) student.  No grad students.

 

If you think you entered everything correctly (you probably didn't) , Try this first: type> letme <in the search box in TT and it will give you the option to select AOTC. 

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