If my parents are spending ~14k on my college education this year, around how much could they get back when they file taxes?
Thank you!
We can’t answer that.
If your parents joint income (MAGI) is under $160,000, they might qualify for an education credit of up $2,500.
The qualified education expenses for the AOTC are tuition, qualified fees, and books.
$4,000 of QEE can result in up to $2,500 of AOTC.
Part of it (up to 40%) of it is refundable, the rest is a credit towards tax liability.
They will need a 1098T from the school for 2017 for next year’s taxes to claim the credit.
The first $2000 you get 100%. The second $2000 you get 25%. So up to $2500 for the first $4000 QEE.