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berean
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SarahM
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This statement refers to the fact that the maximum amount of educational expenses that can be applied towards the AOTC is $4000.

https://www.irs.gov/credits-deductions/individuals/aotc 

If the qualified expenses minus the total amount of scholarship grants is greater than $4000, including the scholarship amount in income will not be likely to increase the resulting amount of the credit.

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