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brian3707
New Member

This is my first time filing taxes as a college student and discovered that I qualify for the American Opportunity credit. Why I'm I receiving an $1888 refund?

I thought the max refund amount was $1000.
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3 Replies
PattiF
Expert Alumni

This is my first time filing taxes as a college student and discovered that I qualify for the American Opportunity credit. Why I'm I receiving an $1888 refund?

You can get a maximum annual credit of $2,500. 

 

Here is the IRS information about the American opportunity tax credit.

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brian3707
New Member

This is my first time filing taxes as a college student and discovered that I qualify for the American Opportunity credit. Why I'm I receiving an $1888 refund?

I'm aware of the $2500 tax credit, but it says I'm getting $1900 towards my refund not a credit.

Hal_Al
Level 15

This is my first time filing taxes as a college student and discovered that I qualify for the American Opportunity credit. Why I'm I receiving an $1888 refund?

Q. I thought the max refund amount was $1000?

A. It is sort of.

 

The maximum credit is $2500, of which only $1000 is "refundable".  So it the other $1500 is used to reduce your tax liability that would free up dome of the withholding on your W-2 to be refunded to you.  

 

But, since we can't see your tax return, we can't give yo a specific answer.  Review you form 1040, line by line. particularly lines 16-32 to see where the refund is coming from.

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