Not getting the full AOTC

Forum|Forum|5 years ago
January 18, 2021
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I am a full time student and this year paid close to $3,000 in taxes; the American Opportunity Tax Credit is only giving me $1,299 and not the full amount. $1,200 to a college student is a pretty big deal, and I wan to know why I didn't get the full refund

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HelenC12

Check your entry to make sure you entered the 1098-T Tuition form correctly.

Check how many years you've already taken the American Education Credit. If you were ever claimed as a dependent and the person claiming you claimed the credit, that counts as you having received it.
If part of your $3,000 tuition amount was paid by a scholarship, the scholarship amount may reduce your credit.

The American Opportunity credit amount is equal to:

100% of the first $2,000 of qualified expenses, plus
25% of the expenses in excess of $2,000.
The maximum annual credit per student is $2,500.

A student eligible for the American Opportunity tax credit:

The credit is only available for the first four years of post-secondary education (undergrad).
Enrolls in at least one academic semester during the applicable tax year.
Maintains at least half-time status in a program leading to a degree or other credential.

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jackdyrhaugAuthor

I reentered all the information and it came out the same way.

I was claimed as a dependent, but they never used the AOTC.

No scholarship.

$3,000 is what i'm paying in taxes; my tuition was $7,500.

Not sure if this helps, but I don't know where to go from here.

AlanT222

The AOT is a refundable tax credit. So if the annual income tax you owe, goes below $0, you can still receive a refund for the value of the remaining credit. This refundable portion is worth 40% of your total credit, up to $1,000.

Therefore, if your tax liability is $0, the most you would receive from the AOTC is $1,000.

In reading your question, it appears that the first $299 was used to bring your tax liability to $0 and then you were given the refundable portion of $1000.

Please look at line #24 to see if my calculation is correct. It should be $299. Then line #29 should be the $1299.

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