Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Ask the Experts about the new tax laws! >> Event happening TODAY!
cancel
Showing results for 
Search instead for 
Did you mean: 
waitforit226
New Member

In previous years I received refund from my 1098-T. In 2017 I was enrolled in two institutions (undergrad and grad), I am paying more but not receiving any refund. Why?

 
1 Best answer

Accepted Solutions
Anita01
New Member

In previous years I received refund from my 1098-T. In 2017 I was enrolled in two institutions (undergrad and grad), I am paying more but not receiving any refund. Why?

Your graduate school expenses do not count for the American Opportunity credit, the one that can pay you cash over and above tax you had withheld from a  paycheck.  The undergraduate classes can count for the American Opportunity credit but the largest portion of it, $1500, can only reduce your taxable income to zero, not pay you additional cash.  The Lifetime Learning credit, which can be taken for graduate expenses, can also only reduce your taxable income to zero, but does not pay you anything after that.  So, the graduate expenses may not be worth anything to you, if you don't have enough taxable income to use that credit.

View solution in original post

1 Reply
Anita01
New Member

In previous years I received refund from my 1098-T. In 2017 I was enrolled in two institutions (undergrad and grad), I am paying more but not receiving any refund. Why?

Your graduate school expenses do not count for the American Opportunity credit, the one that can pay you cash over and above tax you had withheld from a  paycheck.  The undergraduate classes can count for the American Opportunity credit but the largest portion of it, $1500, can only reduce your taxable income to zero, not pay you additional cash.  The Lifetime Learning credit, which can be taken for graduate expenses, can also only reduce your taxable income to zero, but does not pay you anything after that.  So, the graduate expenses may not be worth anything to you, if you don't have enough taxable income to use that credit.

Dynamic AdsDynamic Ads
Privacy Settings
v