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Education
You are correct in saying that the maximum refundable part of the AOTC is $1,000.
In your case, you may also have some non-refundable AOTC. You cannot have non-refundable AOTC only when your tax liability is zero. Having a refund before entering the AOTC does not necessarily mean that your tax liability is zero. The refund means that you had tax withheld (and other tax credits) of more than your tax liability. So if you had some tax liability then you would benefit from the non-refundable part of the AOTC also.
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March 10, 2022
11:11 AM