American Opportunity Education Tax Credit

[LostinNJ]

I still have taxes due on my return yet the American Opportunity Tax Credit is being limited by the Refundable Tax Credit.  My household income is not particularly high by the Education Tax Credit is being limited to $1,500 instead of receiving the whole $2,500  Education Tax Credit.

This credit is for my third child in college and this is the first time that Turbo Tax has calculated a limited Education Tax Credit on my return.  It looks like there could be an error in the various pages related to Form 8863.

Help Please!

LostinNJ

[Hal_Al]

Are you trying to claim the AOC on your return or the student's?

Generally students under 24 aren't eligible for the refundable portion, on their own return. 

If it's your return, that is  weird; that you would get the $1500 non refundable portion only.  The refundable portion ($1000) is shown separately on line 29 of form 1040  (it was on line 18c  on the 2019 form).  It that's not it, Delete the student and start over.  Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  You'll then get the "Your Education Expenses Summary" screen again.  Click the "Add a student" button.

[LostinNJ]

Hi Hal,

I figured it out with the help of the help desk. I don't know if the forms changed but the $2500 credit is broken up into the the non- refundable credit portion with other non-refundable credits while the $1000 refundable credit was with other refundable credits. It initially didn't make sense that I was only getting a $1500 credit but it became clear that I was getting the $2500 credit when I eliminated the 1098 T. Then I just looked for where the other credits and payments where being shown. All good now. Thanks for the quick response!