American Opportunity Credit

Forum|Forum|3 years ago
April 3, 2023
2 replies
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I received the AOC of $2,500 but only $1.000 was carried over to my tax return ?

HelenC12

TurboTax may state that you could get a maximum American Opportunity Tax Credit (AOTC) of $2,500 which can reduce your tax liability and/or get you a refund. There are two parts to the AOTC.

One part of the credit is nonrefundable. Up to 60% of the $2,500 can help reduce you tax liability up to $1,500.
The other part is refundable up to 40% of the $2,500. This means you can get up to a $1,000 refund, which is what you received.

We can't see your tax return to see the calculation of your American Opportunity Tax credit. However, you can see it. View/Print a copy of your Form 8863.

If you're using TurboTax Online, click here for printing instructions.
If you're using TurboTax CD\Download, click here for printing instructions.

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Hal_Al

Employee

The AOC comes in two pieces. The refundable portion ($1000 max) is on line 29 of form 1040. The other piece ($1500 max) is included on line 20, of form 1040, via Schedule 3 (line 3) and form 8863. The $1500 is non refundable and can only be used to reduce your tax liability. It is not added to your refund.