While the total amount of the AOC is worth up to $2,500, only $1,000 of the AOC is actually refundable. This means you can use the other portion to reduce your tax liability if you have any. But, only $1,000 can be directly added to your refund without any tax liability.
Because of this its also reported on two separate lines on your return - one line (Form 1040A Line 33 or Form 1040 Line 50) for the potion that reduces tax liability and one line (Form 1040A Line 44 or Form 1040 Line 68) for the refundable portion.
