• 7. Enter the amount from line 2. field contains 2,500
• 8. Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) field contains 180,000
• 9. Enter the amount from Form 1040, line 38*, or Form 1040A, line 22 field contains 103,000
• 10. Subtract line 9 from line 8. If zero or less, stop; you cannot take any education credit field contains 77,000
• 11. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) field contains 20,000
• 12. If line 10 is: (bullet) Equal to or more than line 11, enter 1.000 on line 12. (bullet) Less than line 11, divide line 10 by line 11. Enter the result as a decimal (rounded to at least three places) field contains 1.000
• 13. Multiply line 7by line 12. Caution: If you were under age 24 at the end of the year and meet the conditions beginning on page 3 of the instructions, you cannot take the refundable American opportunity credit. Skip line 14, enter the amount from line 13 on line 15, and check this box. field contains 2,500
• 14. Refundable American opportunity credit. Multiply line 13 by 40% (.40). Enter the amount here and on Form 1040, line 66, or Form 1040A, line 43. Then go to line 15 below. field contains 1,000
• Under Part IV: Nonrefundable Education Credits
• 15. Subtract line 14 from line 13field contains 1,500
• 16. Enter the amount from line 6, if any. If you have no entry on line 6, skip lines 17 through 22, and enter the amount from line 15 on line 8 of the Credit Limit Worksheet (see instructions)field contains 1,000
• 17. Enter: $120,000 if married filing jointly; $60,000 if single, head of household, or qualifying widow(er)field contains 120,000
• 18. Enter the amount from Form 1040, line 38*, or Form 1040A, line 22field contains 103,000
• 19. Subtract line 18 from line 17. if zero or less, skip lines 20 and 21, and enter zero on line 22.field contains 17,000
• 20. Enter $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)field contains 20,000
• 21. If line 19 is: (bullet) Equal to or more than line 20, enter 1.000 on line 21 and go to line 22. (bullet) Less than line 20, divide line 19 by line 20. Enter the result as a decimal (rounded to at least three places) field contains .850
• 22. Multiply line 16 by line 21. Enter here and on line 1 of the Credit Limit Worksheet (see instructions)field contains 850
• 23. Nonrefundable education credits. Enter the amount from line 13 of the Credit Limit Worksheet (see instructions) here and on Form 1040, line 49, or Form 1040A, line 31.field contains 2,350
• Footnote: If you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from Puerto Rico, see Pub. 970 for the amount to enter.

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