Why does TurboTax separate American Opportunity Credit and Education Credit? My $2500 Amer Op credit is split to $1500 education credit and $1000 American Op credit?

[Dolphins89]

Wife had over $4k in tuition in form 1098-T.  I'm filling out form 8863 and should have $2500 American Opportunity Credit.  However Turbotax shows $1500 education credit and $1000 American Opportunity Credit.  Wouldn't the IRS think this is wrong since my form 8863 will say $2500 American Opportunity Credit?

[Vanessa A]

Where do you see this?  Are you sure you are not seeing $1,000 as a refundable credit and $1,500 as the non refundable part? You can only get one education credit per person, but the AOTC can be split between refundable and non refundable. 

[Dolphins89]

Thanks for replying! I click on the Federal Refund (in progress) link at the top, then go to Your Taxes, then Credits, and it shows there.  Is there a better way to see the breakdown?  I just want to make sure it's sent to the IRS correctly.  My wife has over $4k tuition in the 1098-T, and filling out form 8863 gives me $2500 just for American Opportunity credit.  I have to attach it when submitting so it looks strange to send to the IRS like this.

[Vanessa A · Accepted solution]

It is breaking down your AOTC into the refundable and nonrefundable portions.  If you look at form 8863, you will see line 19 shows $1,500 and line 8 shows $1,000.  On form 8863, Part II is Nonrefundable Education Credits, Part I is Refundable American Opportunity Credit.  Basically, TurboTax is doing a graph using the words on the form.  This graph is not sent to the IRS only the form 8863. 

[Dolphins89]

Ok I understand now, thanks.  I'm still trying to fill out 8863 to be able to attach it.  In Part 1 line 3, it asks for the amount from Form 1040 or 1040-SR, line 11.  I have already completed the Turbotax part and paid for Premier.  If this is the case, has Turbotax already generated form 1040 and can I see it to pull this data?  If it's not generated before I file, where else is this value?  

[JohnW152]

To see Line 11, adjusted gross income, on the return you’re working on in TurboTax Online:

1. Click Pick up where you left off if it’s on your screen.
2. Click on Tax Tools in the left pane.  
3. Click on Tools. 
4. Click on View Tax Summary. 
5. The Review Tax Summary screen generates, and you can see your adjusted gross income there.

If you click on Preview my 1040 in the left pane, you can see a preview of your return.

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