Q. TurboTax computing only $53 American Opportunity Credit for my son's $17,500 tuition payment. Married filing jointly with 131k Adjusted taxable income. Why not $1000?
A. A better question would be why not $2500, the maximum. $1000 is only the refundable portion.
The most likely explanation is Turbo Tax has calculated that you only have $53 of net qualified educational expenses (QEE). And the most likely explanation for that is that QEE has been allocated to scholarships and/or 529 plan distributions.
Provide the following info for more specific help:
- Are you the student or parent.
- Is the student the parent's dependent.
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of the 1099-Q
- Box 2 of the 1099-Q
- Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
- Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Are you trying to claim the tuition credit (are you eligible)?
- Is the student an undergrad or grad student?
- Is the student a degree candidate attending school half time or more?
