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K
krameb
February 7, 2022
Question

American Opportunity Credit

  • February 7, 2022
  • 2 replies
  • 0 views

How does the American Opportunity Credit is calculated in Turbotax?

 

I entered the 1098-T for my two daughters but only got a $205 refund for each.

 

Is there a proportional calculation done?

    2 replies

    Hal_Al
    Hal_Al
    Employee
    February 7, 2022

    The AOC is 100% of the first $2000 of tuition paid and 25% of the next $2000.  $2500 maximum. It is 40% refundable ($1000 max). That is, you get part of it even if you have no tax liability.  See the calculations on form 8863.

      K
      kramebAuthor
      February 7, 2022

      Thank you. Understood! 😞

      L
      LoganathanB
      February 7, 2022

      Two factors can reduce your credit. 

      • Modified Adjusted Gross Income
      • Your Tax Liability

       

      Click on the link for more information

       

      American Opportunity Tax Credit

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