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February 20, 2021
Question

Why won't my college credit be added to my tax return?

  • February 20, 2021
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Hal_Al
Employee
February 20, 2021

Q. Why isn't  my education credit  added to my tax refund?

A. A tax credit only reduces the amount of tax you owe. If your tax was already 0, additional credits will do you no good.  There is one exception; 40% of the American Opportunity Credit (AOC) is refundable (you get it even if your tax is at 0).

 

The refundable credit is on line 29 of form 1040. If that line is blank or 0, you weren't eligible.  

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. See https://www.irs.gov/Individuals/AOTC

 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.