Other tax breaks you qualified for this year:2021 American opportunity credit $683 Education nonrefundable credit: $1,025 Why is the QHEE/ AOTC $1708 amount split?

[crafteelly]

I thought first $2000 was 100% then 25% remainder $2,000. Up to $2500 total credit?
The $1708 is showing straight refund so $ correct on refund, just odd it is split by category. Thanks in advance.

[MayaD]

Your American Opportunity credit is 40% refundable. 

• The refundable portion is $1,000 ($2,500 x 40%).
• The remaining $1,500 ($2,500 x 60%) is a nonrefundable credit that provides a benefit to you only if you owe federal income taxes.

The American Opportunity credit is phased out if your modified adjusted gross income (MAGI) exceeds certain levels. (MAGI is adjusted gross income plus certain tax-free income from sources outside the United States.)

• For 2021, the MAGI phase-out range for unmarried individuals is $80,000 to $90,000.
• The MAGI phase-out range for married couples filing jointly is $160,000 to $180,000.