Lifetime learning credit 1098T tax credit

[Nicki9]

I owe 300 for Fed taxes. When I put in my 1098T tax form. I should get a credit of 2000 (20%). When i put it in it says I get a refund of 1700. It should bring my taxes to 0, not give me a refund of 1700 from what I read for the LLC credit. What am i inputting wrong in Turbotax? 

[MinhT1]

The Life Learning credit is a non-refundable credit, but it should be matched against your tax liability and not your refund. As an example, your tax due of $300 could be the result of a tax liability of $3,500 and a tax withholding of $3,200. The Lifetime learning credit of $2,000 would result in a refund of $1,700.

[NCperson]

@Nicki9 

taxes are determined on lines 11-24.   the tax liability is on line 22.  your LLC will reduce this liability, but it can't go below zero.  

Once tax is determines, the payments (lines 25-33) is how you pay for it .

[Nicki9]

ok, so my 1700 refund is legitimate?  Line 18 is 3243, lines 20 and 21 are 2000, line 22 is 1243. line 33 is 3025. So refund is 1782? I just want to make sure the Learning Credit was applied correctly, and I don't owe it back later.

[NCperson]

yes, that is the way it works. 

[Vanessa A]

yes, line 18 is your beginning tax before the non refundable credits.  Line 21 is your total non refundable credits (which would be your lifetime learning credit).  That takes your tax down to $1,243.  Then I am assuming line 24 is the same as line 22.  

Then on line 33 this is the total of your payments including refundable credits and withholdings from your pay check.  So when you subtract $1,243 from $3,025, you get $1,782.  So that is your real refund.  Assuming you entered everything correctly on your return you would not have to pay it back.