Will I be able to claim all the money back I paid and how does the 1098-T work?

[BelknapPoint]

@twoinanddone

If you are eligible for the AOTC, there is a maximum of $4000 credit, and of that only $1000 is ‘refundable’ (you’ll get it even if you don’t have tax liability) but the other $3000 only offsets other taxes owed.

The American Opportunity Tax Credit is a maximum of $2,500, not $4,000. There has to be $4,000 in QEE spending to get the full $2,500 credit. The credit is dollar-for-dollar for the first $2,000 spent on QEE, and then a 25% credit for the next $2,000 spent on QEE.

Edited to add: and I agree that using a credit card to pay college costs is usually a terrible way to pay.