Q. It didn't give me the full $2500 credit but it did give me $1345 in Education credit on my return. Is this correct?
A. Yes, that's possible. The AOC is only 40% refundable ($1000 max). The other $1500 can only be used to offset an actual tax liability. The $1000 should be on line 29 of form 1040. If you tax liability on line 18 is only $345, that would explain the $1345 credit.
