Hal_Al
Level 15

Education

Q. She will have to pay taxes on $18,835 at 12%, so $2260? Meaning, it kind of cancels out AOTC? 

A.  The AOTC is $2500 for you.  You don't compare that to the tax on $18,835 ($2260).  You compare it to the tax on the ADDITIONAL $4000 of income, for her ($480).