I am filing my taxes using TurboTax. However, earlier it was showing me a tax refund of 3000 something. When I filled out my college fees (1098-T), it is now asking me to accept Lifetime Learning Credit, and is now showing my refund as 5000 something.
I thought Lifetime Learning Credit was not refundable, so how is this happening?
While you are correct that the Lifelong Learning Credit is nonrefundable, it can be used to pay any tax liability you have, so if you had withholding on your W2 or other forms, it is possible that the Credit is replacing that so you get a bigger refund. (It is a running total so it can change as entries are made so you may not get to the final results until you have entered everything.)
While you are correct that the Lifelong Learning Credit is nonrefundable, it can be used to pay any tax liability you have, so if you had withholding on your W2 or other forms, it is possible that the Credit is replacing that so you get a bigger refund. (It is a running total so it can change as entries are made so you may not get to the final results until you have entered everything.)