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Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 3 weeks ago

Why my tax return decrease when I answer yes to “did the student complete the firts 4 years of post secondary education?

I am getting master degree, but last year I was doing the same.

Update:

Like I was getting some money back, then after I answer yes for that question, I have to pay lol. It doesn’t make sense 

7 Answers

Relevance
  • 2 weeks ago

    if you get this offer

    Check this offer https://getaalltimeamazongiftcard.blogspot.com/

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  • ?
    Lv 7
    3 weeks ago

    Grad students are not eligible for the AOC education credit. When you check that box, it changed to the Lifetime Learning Credit which is less.

  • Judy
    Lv 7
    3 weeks ago

    The credit that pays the most is only good for 4 years.

  • 3 weeks ago

    Some education credits do not apply to grad school.

  • Anonymous
    3 weeks ago

    Ok I get this but it wasn’t claimed before. Like a question before says has the hope scholarship credit or American opportunity  credit been claimed for this student for any 4 tax years? It is No all

    Others tax years 

  • Anonymous
    3 weeks ago

    The software stupidly showed you a possible tax refund based on being eligible for the American Opportunity Credit.  When you indicated you weren't eligible, it switched the refund to the Lifetime Learning Credit which is not as generous.  If the software had *not* shown you anything until you answered all of the questions, you wouldn't have felt cheated.

    The AOC isn't intended for master's degrees.  See IRS publication 970 for more information.

  • 3 weeks ago

    Yes, it makes sense.

    The American Opportunity Tax Credit is only available for individuals in their first 4 years of higher education. 

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