TurbTax computing only $53 American Opportunity Credit for my son's $17,500 tuition payment. Married filing jointly with 131k Adjusted taxable income. Why not $1000?

Look for how the education credits are calculated on Form 8863 in your documents. You may need to pay for the prep fees before being able to view.

Q.  TurboTax computing only $53 American Opportunity Credit for my son's $17,500 tuition payment. Married filing jointly with 131k Adjusted taxable income. Why not $1000?

A. A better question would be why not $2500, the maximum.  $1000 is only the refundable portion.

The most likely explanation is Turbo Tax has calculated that you only have $53 of net qualified educational expenses (QEE).  And the most likely explanation for that is that QEE has been allocated to scholarships and/or 529 plan distributions. 

Provide the following info for more specific help:

• Are you the student or parent.
• Is the  student  the parent's dependent.
• Box 1 of the 1098-T
• box 5 of the 1098-T
• Any other scholarships not shown in box 5
• Does box 5 include any of the 529/ESA plan payments (it should not)
• Is any of the Scholarship restricted; i.e. it must be used for tuition
• Box 1 of the 1099-Q
• Box 2 of the 1099-Q
• Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)?
• Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
• Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
• How much taxable income does the student have, from what sources
• Are you trying to claim the tuition credit (are you eligible)?
• Is the student an undergrad or grad student?
• Is the student a degree candidate attending school half time or more?