Question

Education Credit Amount

Forum|Forum|6 years ago
February 12, 2020
1 reply
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TurboTax says that my biggest credit is in the form of a tuition deduction wor th$4,000. I am confused as to how that benefits the dollar amount I will receive in my refund? My sister who qualified for the American Opportunity Education credit received a whole $2,500 from the credit according to TurboTax. I am confused as to why TurboTax reports my value as $4,000 but my total refund isn't even $1,000? I'm a 20 y/o junior in undergrad.

Hal_Al

Employee

20 y,o. undergrads, who do not support themselves with earned income are not eligible for the (up to) $1000 refundable portion (not $2500) of the American Opportunity (AOC) credit. The $4000 Tuition & Fees deduction (TFD) must have been all that was needed to get your income tax to zero. In that case, it's better than the credit because it transfers to the state return, as well.

A

ABiceAuthor

Thank you, that makes a bit more sense. My sister (who was able to claim the $2,500 as part of her refund) is completely independent from my parents as she is 25 and financially independent as well - which sounds like that was the major difference between our tax refund amounts.