Working on an Associate, Bachelor's, or Graduate Degree

[Scott155]

Why does answering "yes" to this question reduce the amount of refund I get?

[Bsch4477]

Deleted 

[Hal_Al]

No.

If anything, it might increase your refund. You must be a degree candidate to get the more generous American Opportunity Credit (AOC or AOTC).

[xmasbaby0]

@Scott155 Are you certain the amount that was reduced was a refund----or did it say "TAX DUE" by that amount?  If you are working on an associate or bachelor's degree you may be getting the American Opportunity Credit---which can reduce your tax due and which has a refundable amount.  If you are working on a graduate degree, you may be getting the Lifetime Learning Credit, which is not refundable, but which can reduce your tax owed.