How does the $2500 education tax credit work and what are the requirements?

big_j_gizzy

New member
Online I read: Individuals making less than $80,000 or families making less than $160,000 can get up to $2,500 in tax credits for college tuition. 40 percent ($1,000) of the credit is refundable.

I've been going to school for 4 years but do not have my degree yet, do I still apply? If so...

If only 40% is refundable, I'm assuming the only way you can use the other $1500 is if you owe the government money when you file taxes?

I normally file W-2's and get money back at the end of the year so would that extra $1500 disappear?

I also might change jobs and be filing a 1099...where I would owe the government at the end of the year. If that's the case, does the tax credit help pay off what I would owe the government?

Sorry, many questions in 1 but thanks for the help.
 
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