Our married filing joint MAGI is around $142,500 and my Graduate level education expenses were higher than $10,000 why is our tax credit only $564?

[dmorningstar7]

We have some other deductions but we still owe about $300 Fed

[Hal_Al · Accepted solution]

The only credit available to grad students is the Lifetime Learning Credit (LLC). It is a non refundable credit. That is, it can only be used to offset an actual tax liability (no refund).

Grad students are generally not eligible for the more generous American Opportunity Credit, except in the year they receive their BS/BA.

Only tuition and fees are eligible expenses for the LLC.  Books and computers and room & board do not count.