AOC - Refunded payments

Glioma — Sun, 25 Jan 2026 22:46:00 GMT

Hi, I’m trying to file my 2025 taxes and I need some clarification.

Here’s my situation:

Total tuition for the year = $9,559
For one semester (tuition $4,700), I paid $2,350 upfront before the scholarship was awarded
Then I received a $5,000 scholarship for the year
The school refunded me $2,350 (my payment) + $300 extra

My question is: Does this refund of the money I paid affect my return? In another tax filing software, there's a question syaing “Did AAA receive a refund of any educational expenses paid in 2025?”

I’m confused because I technically got a refund of the money I paid, but the scholarship still leaves $4,559 of net tuition for the year.

Should I answer Yes or No to this refund question? How would this affect the American Opportunity Credit?

Re: AOC - Refunded payments

Hal_Al — Mon, 26 Jan 2026 02:06:05 GMT

Q. Should I answer Yes or No to this refund question?

A. Answer No. It's not relevant. You had $9559 in tuition and $5000 in scholarship. That leaves $4559 of tuition that you can claim for the AOC. It only takes $4000 to get the maximum AOC.

topic AOC - Refunded payments in Education

AOC - Refunded payments

Re: AOC - Refunded payments