Because of an error in a TurboTax calculation, you may not have received the American Opportunity Tax Credit, resulting in a possible overpayment of your federal tax.
We fixed the issue in TurboTax, and we want to make sure your federal and state tax returns are complete and accurate. We recommend that you check and, if necessary, amend your tax return to determine if any additional refund is due. There are no additional fees for checking your TurboTax return or for preparing an amendment.
Check to ensure that you are eligible to take the American Opportunity Tax Credit (AOTC) before amending your tax return.
- To be eligible for AOTC, the student must:
- If a child under the age of 24, must be a qualifying dependent on the taxpayer’s tax return,
- Be pursuing a degree (undergraduate) or other recognized education credential,
- Be enrolled at least half time for at least one academic period beginning in the tax year,
- Not have finished the first four years of higher education at the beginning of the tax year.
- There are also income limitations:
- To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
- You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
- You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).
- Finally, ensure you have a Form 1098-T from an eligible institution and have not claimed the AOTC for four years already.
We continuously strive to provide correct and accurate calculations in our TurboTax products. Sometimes that effort results in our finding errors after returns have been filed. We sincerely apologize for any inconvenience this may cause you. If you need our help, we’ve provided contact information at the bottom of this letter.
To amend your return in TurboTax, select your TurboTax product and follow the step-by-step instructions:
We’re here to help if you have questions or need assistance. You can call us at (866) 278-9691 to reach a tax expert who is prepared to assist you with this issue. Tell the expert you’re calling about: 2020 American Opportunity Tax Credit.