Question

American Opportunity Tax Credit and Grant

Forum|Forum|6 years ago
March 12, 2020
1 reply
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Hi guys, so I just filled my taxes for 2019 and was told that this year I did not qualify for the American Opportunity Tax Credit for my last college year. In my case I paid $4,800 in school costs, but $2,500 of it was a work grant, therefore I only paid $2,300 out of pocket. They told me that the calculation is done on the first $2,500 and since I received a grant that technically I was receiving an income of $200 which I ended up writing off with book expenses. I did not receive any of the tax credit, and I am still unsure because I thought the calculation was only on the amount that I paid out of pocket. Any Help? Thank you!

DaveF1006

It sounds like a mistake somewhere in the reporting. Unfortunately i cannot access your tax return to find out how this was reported. Based on what you told me, you should have received lifetime learning credit depending if you had tax based of off or tuition fees adjustment.

At this point you may wish to contact a specialist that can work through that section of the return with you. The specialists can look at your return on their screen to find out exactly what is causing this issue and suggest how you can take corrective action if needed. Also they can help determine if you were entitled to a credit or a fees adjustment.

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