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mxatwe16
New Member

When reviewing the forms, the AOTC shows a 2500 refund but the am only shown 1000 as the final federal refund. How do I correct this?

 
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LindaA
Expert Alumni

When reviewing the forms, the AOTC shows a 2500 refund but the am only shown 1000 as the final federal refund. How do I correct this?

There is no correction required. While the maximum American Opportunity Tax Credit (AOTC) is $2,500 only $1,000 of the credit is refundable. The other $1,500 is subtracted from your taxable income. 

For more information, please see What Is the Difference Between a Refundable and a Nonrefundable Credit?

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1 Reply
LindaA
Expert Alumni

When reviewing the forms, the AOTC shows a 2500 refund but the am only shown 1000 as the final federal refund. How do I correct this?

There is no correction required. While the maximum American Opportunity Tax Credit (AOTC) is $2,500 only $1,000 of the credit is refundable. The other $1,500 is subtracted from your taxable income. 

For more information, please see What Is the Difference Between a Refundable and a Nonrefundable Credit?

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