My son started college in Fall 2021. He received two checks in the amount of $1000 each from the school as HEERF 3 refunds in 2021. My understanding is that the money is not taxable, so I have NOT entered the amount anywhere in our tax returns. And then, Turbotax applied AOTC (American Opportunity Tax Credit) to our tax returns. As far as our income goes, we would qualify for AOTC, but can you claim both?
My questions are:
1) Should I report $2,000 somewhere in our returns, maybe under scholarships/grants? Or deduct that amount from the tuition?
2) With the $2000 HEERF 3 money already given, are we still eligible for the ATOC?
