<p>Yes…it is a tax credit. If you are due to receive a refund, the credit will make your refund amount larger.</p>
<p>Up to $1000 of the AOC is refundable, meaning even if your tax owed is 0 you can get up to a $1000 larger refund.</p>
<p>Thanks! I will put AOC on the FAFSA then and hope that’s the way our taxes end up! Appreciate all your help!</p>
<p>
60% of AOTC goes to non-refundable section and 40% goes to refundable section
I don’t think I ever reported AOTC on the FAFSA.</p>
<p>“I don’t think I ever reported AOTC on the FAFSA.”</p>
<p>Me neither…not necessary.</p>
<p>You don’t report the AOTC on FAFSA as it is reflected in the total taxes paid. The AOTC reduces your taxes, so you don’t have as much to report on FAFSA. Your income is reduced by taxes paid on FAFSA.</p>
<p>Question 93a on the 2014-15 fafsa asks for parent’s total education credits:</p>
<p><a href=“https://fafsa.ed.gov/fotw1415/help/fotw36e.htm[/url]”>https://fafsa.ed.gov/fotw1415/help/fotw36e.htm</a></p>
<p>The amount of the credit is added to the amount entered in the taxes paid question so you aren’t penalized for having taken a credit. You only enter the non-refundable part. If the non-refundable part takes your tax liability to 0 and you also get the refundable part, you don’t enter that. The DRT will populate this question automatically.</p>
<p>Thanks all! Yes, on FAFSA, parent financial section, you are asked which type of education credits you took/will take.</p>