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New Member
posted Mar 12, 2023 12:07:07 PM

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

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

0 3 789
3 Replies
Level 15
Mar 12, 2023 12:24:01 PM

Deleted 

Level 15
Mar 12, 2023 12:25:47 PM

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).

Level 15
Mar 13, 2023 7:24:47 AM

@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.