topic Not getting the full AOTC in Education

Not getting the full AOTC

jackdyrhaug — Mon, 18 Jan 2021 14:43:46 GMT

I am a full time student and this year paid close to $3,000 in taxes; the American Opportunity Tax Credit is only giving me $1,299 and not the full amount. $1,200 to a college student is a pretty big deal, and I wan to know why I didn't get the full refund

Re: Not getting the full AOTC

HelenC12 — Mon, 18 Jan 2021 15:11:53 GMT

Check your entry to make sure you entered the 1098-T Tuition form correctly.

Check how many years you've already taken the American Education Credit. If you were ever claimed as a dependent and the person claiming you claimed the credit, that counts as you having received it.
If part of your $3,000 tuition amount was paid by a scholarship, the scholarship amount may reduce your credit.

The American Opportunity credit amount is equal to:

100% of the first $2,000 of qualified expenses, plus
25% of the expenses in excess of $2,000.
The maximum annual credit per student is $2,500.

A student eligible for the American Opportunity tax credit:

The credit is only available for the first four years of post-secondary education (undergrad).
Enrolls in at least one academic semester during the applicable tax year.
Maintains at least half-time status in a program leading to a degree or other credential.

Re: Not getting the full AOTC

jackdyrhaug — Mon, 18 Jan 2021 15:43:00 GMT

I reentered all the information and it came out the same way.

I was claimed as a dependent, but they never used the AOTC.

No scholarship.

$3,000 is what i'm paying in taxes; my tuition was $7,500.

Not sure if this helps, but I don't know where to go from here.

Re: Not getting the full AOTC

AlanT222 — Mon, 18 Jan 2021 18:37:47 GMT

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.

Re: Not getting the full AOTC

Hal_Al — Tue, 19 Jan 2021 00:17:46 GMT

"I was claimed as a dependent"

If you were claimed as a dependent, on someone else's tax return, you are not allowed ANY AOTC (any any other tuition credit or deduction).

What is your income, that you have a $3000 tax liability? If you have enough income to have that much tax liability, how to you end up being a dependent?

How old are you? . A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit

Grad students are not eligible for the AOTC. TT may be calculating the Lifetime Learning Credit. $7500 x 20% = $1500

Re: Not getting the full AOTC

jackdyrhaug — Wed, 20 Jan 2021 13:08:34 GMT

This is actually incorrect!

My tax liability after all my tax breaks was just over $2,800, so I should be able to get the full $2,500 from the AOTC and only pay $300 in taxes.
Do you have any other ideas??

Thank you!

I am 21 years old. I am not claimed as a dependent this year, but was in previous years by my folks.

I work a lot because college is expensive (haha) which is why I have a higher tax liability than most during college.

Re: Not getting the full AOTC

Hal_Al — Wed, 20 Jan 2021 13:50:15 GMT

Go back to the personal info section and click edit next to your name. Go thru whole personal info interview. Because you are under 24, you will encounter a question: did you provide more than half your own support with earned income (or some such wording). Be sure you answered correctly.

The AOTC appears in two pieces on the tax forms. The $1000 refundable portion on line 29 of form 1040, The remainder ( should be $1500 in your case) will be included on line 20 of form 1040 (transferred from line 3 of schedule 3 and line 19 of form 8863).

Still, $1299 is a weird number. You may also have errors in entering your educational expenses. Check line 27 of form 8863. It should be $4000.