HelenC1
Expert Alumni

Get your taxes done using TurboTax

You don't correct it. Your tax return is correct.  

 

There are two parts to the American Opportunity Tax Credit (AOTC). The credit is split out in two different places on your income tax return.

 

 The first is a maximum nonrefundable credit of up to $1,500. The nonrefundable credit can be up to $1,500:

  • It is on Schedule 3 (Form 1040 or 1040-SR), Line 3 Education credits from Form 8863, line 19. 
  • nonrefundable credit is subtracted from your income tax liability, up to the total amount you owe. But unlike a refundable tax credit, a nonrefundable credit cannot reduce your tax balance beyond zero. 
  • For additional information, click on What Is the Difference Between a Refundable and a Nonrefundable ...

The second is a refundable credit of up to $1,000. 

If you're not eligible for the American Opportunity Tax Credit, you may be eligible for:

Related information: 

[Edited 3-12-2020|11:05 am PST]

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post