Women's Health Bag
Latest Articles
February 28, 2018 - Benefits of using party rentals for outdoor business events
February 16, 2018 - Benefits of authorized Benz service centers and independent shops
February 12, 2018 - What is the importance of high asset divorce lawyer in Fairfax?
February 9, 2018 - Charcoal Mask – Charcoal Activated Face Mask
February 7, 2018 - Fundamentals of safe sex
January 27, 2018 - How To Lay A Brick Patio – Tips And Tricks
January 20, 2018 - What it takes to rebuild the Chimney
January 17, 2018 - Party Rentals – Best Outdoor Solutions Discussed
January 14, 2018 - What To Do When Heat Pump Not Heating Properly?
December 29, 2017 - All About Domestic Battery – How To File It? How To Defend It?
December 18, 2017 - Is there a way to deal with hair loss due to Hypo or Hyperthyroidism?
December 12, 2017 - Get rid of your extra flab and improve your cognitive abilities with MIND diet
November 30, 2017 - Be cautious about the stages of allergy outbreak
November 26, 2017 - Transform your outdoor space to a relaxation and nature viewing ground
November 20, 2017 - Unleash the benefits of keratin treatment for your hair
November 15, 2017 - How to engage a party rentals companies?
November 14, 2017 - Know about vitamins and supplements for a successful knee replacement surgery
November 14, 2017 - What are the various ways of stump removal?
November 11, 2017 - Learn the Different Ways to Look for Low Cost Dental Implants
October 31, 2017 - Getting a Brazilian Keratin Treatment for the First Time? Here’s What to Expect
American Opportunity Credit

The American Opportunity Credit (AOTC) for 2014, 2015

The AOTC is one of the credits available for students who are in their first 4 years of expanding their education. The maximum amount of the credit is $2,500 per student who qualifies. In the event that the credit brings your tax balance to zero, up to one thousand dollars (40%) will come to you in the form of a refund.

Qualifying For the American Opportunity Credit

In order to receive the American Opportunity Credit you must:

  1. Be working on a degree or other recognized educational credential
  2. Be attending school at least half time for one academic period
  3. Be in your first 4 years of higher education
  4. Not have claimed the credit or the Hope credit for more than 4 years
  5. Not have a felony drug conviction

(Academic Period refers to semesters, quarters, trimesters and any other period of study. The school determines academic periods. For schools, that use credit hours instead of academic terms, payment periods are used as academic periods.)

Income Limitations for the American Opportunity Credit

  • Your MAGI is less than $80,000 or $160,000 for those filing married filing jointly
  • If your MAGI is between $80,000 and $90,000 or $160,000 and $180,000 for married filing jointly, you will receive a reduced amount of the credit
  • If your modified adjusted gross income is more than $90,000 or $180,000 for married filing jointly, you cannot claim the credit.

(You can find out your MAGI by looking on line 22 on Form 1040A or line 38 on Form 1040.)

How to Claim the American Opportunity Credit

Usually, you will receive Form 1098-T by the end of January so you can determine your credit amount. Box 1 or 2 of the form will show the amounts received/billed throughout the year. However, you will have to look at your qualified education expenses to see what amount you can claim, the amount shown in the boxes is not always automatically the amount. Additionally, you want to make sure that the form is accurate and if it is not contact your school. To claim the credit you have to fill out Form 8863 and attach it to your 1040.

How much is the American Opportunity Credit Worth?

The credit amount is 100% for the first $2000 of education expenses that qualify that you paid for and 25% for the next $2,000 of educational expenses that qualify that you paid for. However, in the event that the credit brings down your taxes owed to zero, 40% of the remaining amount will be refunded to you as long as it does not exceed $1,000.

Closing Thoughts

If you file your taxes using Turbo Tax, they make claiming the American Opportunity Credit easy. They ask you relevant questions and if you are eligible, they fill in the forms for you based on the information provide. Turbo Tax is your go to resource when you want to receive your largest refund ever.

Tax season can be a painful time for taxpayers. This is because they never know if they are going to have to pay the IRS money or get a much needed refund. If you have a job in the U.S. you are going to have to pay taxes. However, if you overpay, you will receive a refund back for your overpaid taxes.

The good news is with the upcoming 2015 tax refund calculator provided by TurboTax you do not have to wait until tax season comes along to know whether or not you are getting money back, you can find out during any time of the year.

About author

Related Articles

Leave a reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.