The AOT is a refundable tax credit. So if the annual income tax you owe, goes below $0, you can still receive a refund for the value of the remaining credit. This refundable portion is worth 40% of your total credit, up to $1,000.
Therefore, if your tax liability is $0, the most you would receive from the AOTC is $1,000.
In reading your question, it appears that the first $299 was used to bring your tax liability to $0 and then you were given the refundable portion of $1000.
Please look at line #24 to see if my calculation is correct. It should be $299. Then line #29 should be the $1299.
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