My husband qualifies for the $2500 American opportunity credit but it's not being applied to our Federal refund. Why is this?

Forum|Forum|3 years ago
February 1, 2023
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Turbo Tax is telling me that my husband qualifies for the full $2500 refund for the American opportunity credit but our Federal refund is not reflecting this amount.

TurboTax Deluxe Online

xmasbaby0

Employee

The refundable part of that credit is $1000. The rest of the credit reduces your tax owed.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

You're not going to see $2500, on form 1040, being added to your refund. The American opportunity credit (AOC) consists of two pieces. One is found on line 20 of form 1040 (via Form 8863 and Schedule 3) and the 2nd on line 29 of form 1040. Line 29 is the refundable portion and is usually $1000. Line 20 can be anywhere from 0 to $1500. Note line 20 may include other credits, not just the non refundable AOC, see Schedule 3 for details.