The finish line is finally here….
Line 29 is for the American Opportunity Credit. This is an education credit that can be taken for students in college. It helps reduce the amount of taxes owed or may even increase your refund. You will need to fill out Form 8863, Part III for each student being claimed. Then, complete Part I and II with the total of all amounts from all Parts III, line 30. The total amount from line 8 will be entered on line 29 on your 1040.
Line 30 is the Recovery rebate credit. If you didn’t receive all your Economic Impact Payment 3 (EIP3) in 2021, then you can claim the difference here. If you are unsure if you received all that is owed to you, then go to IRS.gov, to create an account and review your letters (if you haven’t already received a copy in the mail). You can claim the Recovery Rebate credit if your EIP3 was less than $1,400 ($2,800 if married filing jointly) plus $1,400 for each dependent you had in 2021.
Fortunately, the rest of your 1040 is just following the prompts and calculating some math equations (feel free to use a calculator, I promise you, you will not be judged, and the IRS will appreciate the accuracy!). Be sure to verify you have entered your Routing number and Account numbers correctly if you opt for direct deposit. Don’t forget to sign and date your 1040 as well. If filing via an e-file software program, then the equations will be calculated for you and you will need to set up a PIN to verify that you are the one signing your 1040 digitally.
As always, if you are unsure of any aspect of doing your taxes, don’t hesitate to contact your trusting tax professional. They are here to help. Good Luck!
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