Other tax breaks you qualified for this year:2021American opportunity credit $683Education nonrefundable credit: $1,025Why is the QHEE/ AOTC $1708 amount split?

Your American Opportunity credit is 40% refundable. 

• The refundable portion is $1,000 ($2,500 x 40%).
• The remaining $1,500 ($2,500 x 60%) is a nonrefundable credit that provides a benefit to you only if you owe federal income taxes.

The American Opportunity credit is phased out if your modified adjusted gross income (MAGI) exceeds certain levels. (MAGI is adjusted gross income plus certain tax-free income from sources outside the United States.)

• For 2021, the MAGI phase-out range for unmarried individuals is $80,000 to $90,000.
• The MAGI phase-out range for married couples filing jointly is $160,000 to $180,000.