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M
maritza1506
March 16, 2020
Question

Why I have $558 of American Opportunity Credit if not $2500? How is this amount calculated?

  • March 16, 2020
  • 1 reply
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1 reply

J
JotikaT2
March 16, 2020

It depends.

 

The credit is calculated from the qualifying education expenses paid during the year on higher education. 

 

The credit is reduced when your Modified Adjusted Gross Income reaches $160,000 up to $180,000 for married filing jointly and  $80,000 up to $90,000 for all other filing statuses.

 

The maximum credit is $2,500.  If the credit brings your taxes to zero, then you can receive a refund up to 40% of any remaining credit up to $1,000.

 

American Opportunity Credit guidelines from the IRS

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