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April 6, 2022
Question

How much can I get tax refund if I submit my 1098T with ''Payments received for qualified tuition and related expenses$13,008.00''

  • April 6, 2022
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Hal_Al
Employee
April 6, 2022

The maximum tuition credit is $2500 and that's based on having only $4000 of qualified tuition and related expenses (you must be a half time or more undergrad). Only $1000 is refundable (the other $1500 only reduces your tax). For grad students, the max is $2000 based on $10K of expenses; none is refundable.

 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863