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Level 1
December 31, 2024
Question

AOTC Miscalculation 2024

  • December 31, 2024
  • 1 reply
  • 6 views

W-2 income, tax liability above $10,000. 

Filing jointly- my wife is in her first year of a four year degree and does not have a 4-year degree. She/we are eligible.
 

Tuition paid is $9,000. First 100% of $2,000 and 25% of the next $2000 means I should be seeing a $2,500 credit. TurboTax is showing a $540 credit. I have answered all eligibility questions and she is a full time student. 

 

Anyone have any ideas before I switch to manual filing?

    1 reply

    rjs
    Level 15
    Level 15
    December 31, 2024

    The American Opportunity Credit may be split into a refundable portion and a nonrefundable portion. The refundable portion appears on Form 8863 line 8 and Form 1040 line 29. The nonrefundable portion appears on Form 8863 line 19 and Schedule 3 line 3. What are the amounts of the two portions of the credit? Do they add up to $2,500?