Deductions & credits

The American Opportunity Credit is worth $2,500 maximum, which includes the refundable portion of $1,000 and the nonrefundable portion of $1,500. If you have income tax liability based on your income, the $1,500 will reduce your taxes to $0, the unused portion will be unused and not refunded. The $1,000 refundable portion is considered a payment, which will be refunded to you if you have no tax liability.

Line 29 of Form 1040 reports the American Opportunity credit. To check to see if you received the credit:

1. Open or continue your return
2. Click on Tax Tools >> Tools to open the Tools Center
3. In the Tools Center, click on View Tax Summary
4. On the left, click on Preview my 1040
5. Scroll down the 1040 form to Line 29 to see if American Opportunity Credit is claimed on your return. See the screenshot below: