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rilycat
New Member

Turbo Tax said that I qualified for the American Opportunity tax credit and it added the money to my return. However, when I added my W2's it took the money off. Why?

 
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2 Replies
ColeenD3
Expert Alumni

Turbo Tax said that I qualified for the American Opportunity tax credit and it added the money to my return. However, when I added my W2's it took the money off. Why?

It possibly moved the credit. If you have no income, you can get the full refundable portion of the credit. If you have any tax liability, the credit pays that first and gives the balance as a refundable credit.

Hal_Al
Level 15

Turbo Tax said that I qualified for the American Opportunity tax credit and it added the money to my return. However, when I added my W2's it took the money off. Why?

I sounds like a simple case of you didn't have enough withheld from your pay.  The tax due on your wages wiped out the refundable education credit. 

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