My daughter has about $2300 in out-of-pocket tuition expenses for 2019. Why is the American Ed. Tax Credit she is receiving only $1,000? Thought it was 100% of 1st $2k?

Forum|Forum|6 years ago
March 28, 2020
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Hal_Al

Employee

Only $1000 is refundable. If her tax liability is already 0, she will not get any more.

Actually the refundable portion is 40% of the total calculated credit, up to $1000. If she only had $2300 of expenses, her refundable credit should be $830, not $1000. Somewhere, you must have entered more expenses.

Hal_Al

Employee

Does you daughter qualify as your dependent? That is, if she has 0 tax liability, why is she claiming the American Opportunity Credit, instead of you. The parent frequently qualifies for the full amount.

turbojholder20Author

@Hal_Al Thanks for the reply! She is almost 22 and lives on her own most of the year. So we didn't claim her as a dependent on our return. She has W-2's totaling around $14k.