AOTC Credit is not $2500

[jwucher2]

Per the 1098-T form, the payments received for qualified tuition (Box 1) is $20,911. We currently owe $5423 in taxes in Turbotax 2022. The American Opportunity Tax Credit (AOTC) reported a credit of $2500 in Turbotax 2021.  But Turbotax 2022 is showing an amount of $1358.  Why the difference?

[AmyC]

My first guess would be change in Income. Then perhaps scholarships or college savings disbursements are involved.

The income range would give you a partial credit.

The credit and income limits:

• For the full credit, your MAGI (modified adjusted gross income) is less than $80,000 ($160,000 if you're filing jointly)
• For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)
• There is no credit given if your MAGI is above $90,000 ($180,000 if you’re filing jointly)

[jwucher2]

Thanks for the information. I think that covers it.