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I'm not getting full American Opportunity Credit of 2.5k. My educational expenses are well over 10k but my calculated credit is only 2k. Why is this?
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June 6, 2019
8:32 AM
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Education
There are two parts to the American Opportunity Credit (AOC). The first is a maximum nonrefundable credit of up to $1,500 and the second is a $1,000 refundable credit.
A 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.
If your tax is less than $1,500, then your AOC will be less then $1,500. Depending on the tax form you are filling out, see form:
- 1040A Line 28 Tax
- 1040 Line 44 Tax
To preview your 1040 Form in TurboTax Online:
- On the left navigation bar, click on Tax Tools then Tools.
- Under Tools Center, click on View Tax Summary
- On the left navigation bar, click on Preview my 1040.
For additional information, click on What Is the Difference Between a Refundable and a Nonrefundable ...
Related information:
[Edited 1-18-19|8:25 am PST]
June 6, 2019
8:32 AM
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Education
Thank you for your explanation! It's still confusing to me. Does that mean I would be getting 1000 + Federal tax amount that I have paid? Thanks!
June 6, 2019
8:32 AM