Did your children receive scholarships or grants that may have reduced their qualified education expenses? Look in box 5 of your children's Form 1098-T to check for scholarships that will reduce their qualified education expenses. We can't answer why your credit is the amount it is without seeing your entries on your tax return.
The amount of the American Opportunity Credit is 100% of the first $2,000 of qualified education expenses that you paid and 25% of the next $2,000 of qualified education expenses that you paid. Qualified education expenses are reduced by scholarships and grants.
For more information, refer to the TurboTax articles What Is the American Opportunity Tax Credit? and How do Education Tax Credits Work?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
