Does high % of income deferral effect EFC under CSS/ PROFILE

BelknapPoint
Fri, 30 Nov 2018 17:29:02 +0000

Are there any income level thresholds or phase outs for the full $2,500 AOTC?

Limit on modified AGI for tax year 2017: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er).

In general does it work along the lines of if one had exactly $2,500 in Federal tax due and qualified for AOTC they would pay $0 Federal tax after the credit? Under another scenario, if one had $1,500 in Federal tax due, the credit would result in a $1,000 refund?

Yes to both.

I realize I should just read the IRS rules here.

Always a good place to start.