Science, Math, & Engineering Emphasis

 Liberal Arts - Science, Math, & Engineering Emphasis is not exactly a full STEM major, but it leans toward STEM.

Here’s a simple way to understand it:
🔹 Liberal Arts = A broad study (a little bit of many subjects)
🔹 Science, Math, & Engineering Emphasis = Focus more on STEM classes (like biology, chemistry, physics, calculus, engineering basics)

It prepares you for transferring into a full STEM major later (like engineering, computer science, or biology) if you want.
But by itself, it’s still considered a Liberal Arts degree — just with a strong STEM focus.

Auto Policy

 The numbers you’re referring to — $100,000/$300,000 vs. $50,000/$100,000 — represent liability coverage limits for bodily injury liability in your Progressive auto insurance policy. Here’s what they mean:

Liability Coverage Explained:

This covers injuries to other people if you’re at fault in an accident.

 • The first number is the maximum per person.

 • The second number is the maximum per accident (total for all injured people).

 • There’s also a property damage limit, which isn’t shown in your question but is usually the third number.

Key Differences:

 • $100k/$300k gives more protection, especially in serious accidents with medical costs or lawsuits.

 • $50k/$100k lowers your premium but increases your risk of paying out of pocket if damages exceed your coverage.

If You Want to Lower Premiums:

 • Yes, going from $100k/$300k to $50k/$100k will lower your rate.

 • However, make sure the savings are worth the reduced protection — especially if you drive a lot, have assets, or live in a litigious state like California.

Estimated Premium Difference

In California, the average cost of a six-month liability-only policy is approximately $80 per month . While specific premium differences between coverage levels aren’t publicly detailed by Progressive, industry data suggests that increasing liability limits from 50/100/50 to 100/300/100 can raise annual premiums by several hundred dollars. For example, The Zebra reports that Progressive’s average annual premium for 100/300/100 coverage is around $1,476 .

Considerations Before Lowering Coverage

• Asset Protection: Higher liability limits offer greater protection for your assets in the event of a serious accident.
• Medical Costs: Medical expenses can quickly exceed lower coverage limits, potentially leaving you responsible for out-of-pocket costs.
• State Requirements: Ensure that any adjustments comply with California’s minimum insurance requirements.

Next Steps

To determine the exact premium savings:

1. Use Progressive’s Car Insurance Calculator: This tool can help estimate how different coverage levels affect your premium.
2. Get a Personalized Quote: Visit Progressive’s website or contact them directly to receive a quote tailored to your specific circumstances. 

8863 form -how AOC works LIne 7

 

🔢 How is that calculated?

Here’s how AOC works:

• You get 100% of the first $2,000 of education expenses = $2,000

• Then 25% of the next $2,000 = up to $500 more

• So the maximum total credit is $2,500 per student

But in this case, maybe the person:

• Had low education expenses (like only a few hundred dollars)

• Or only qualified partially (maybe they only went to school part of the year)

• Or their income was too high and the credit was phased out

So after the math, their credit came out to $55 total.

8863-Line 9 – Nonrefundable American Opportunity Credit

 

🧾 Line 9 – Nonrefundable American Opportunity Credit

• Line 9 is calculated by subtracting Line 8 (the refundable portion of the credit) from Line 7 (the total AOTC).

• This nonrefundable portion can reduce your tax liability to zero, but cannot result in a refund.

• The amount from Line 9 is then entered on Line 2 of the Credit Limit Worksheet to determine your final nonrefundable education credit.​IRS+4IRS+4

📌 8863 Line 4: "Qualified education expenses"

 

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✅ Form 8863 – Education Credits (American Opportunity and Lifetime Learning Credits)

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"Enter the amount of qualified education expenses you paid in 2023 for this student."

This is where you enter the amount you paid for school-related costs that are eligible for the American Opportunity Credit (AOC).

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💡 What are “Qualified Education Expenses” for Line 4?

✔️ You can include:

• Tuition

• Required enrollment fees

• Books, supplies, and equipment (if required by the course/school)

❌ You cannot include:

• Room and board

• Insurance or medical fees

• Transportation

• Sports or club fees (unless required for enrollment)

❌ What you cannot include on Line 16:

 

❌ What you cannot include on Line 16:

• Mortgage interest (that goes on Schedule A)

• Personal loan interest

• Credit card interest (even if used for school)

• Interest someone else paid on your loan

AOTC

 The maximum American Opportunity Tax Credit (AOTC) you can claim is $2,500 per eligible student per year. This credit is designed to help offset the cost of higher education expenses.​IRS+5H&R Block Tax preparation company+5TurboTax+5

💰 How the AOTC is Calculated

• 100% of the first $2,000 of qualified education expenses, plus

• 25% of the next $2,000 of qualified expenses​IRS+4H&R Block Tax preparation company+4TurboTax+4

So, if you spend $4,000 or more on qualified education expenses, you can receive the full $2,500 credit.​IRS+8H&R Block Tax preparation company+8Investopedia+8

🔁 Refundable Portion

Up to 40% of the AOTC is refundable, meaning you could receive up to $1,000 as a refund even if you owe no tax. The remaining 60% can reduce any tax you owe to zero but won't result in a refund. ​IRS+2TurboTax+2Investopedia+2

👤 Eligibility Criteria

To qualify for the AOTC, the student must:

• Be pursuing a degree or recognized education credential

• Be enrolled at least half-time for at least one academic period during the tax year

• Not have completed the first four years of higher education at the beginning of the tax year

• Not have claimed the AOTC for more than four tax years

• Not have a felony drug conviction at the end of the tax year ​TurboTax+9IRS+9IRS+9

💵 Income Limits

The AOTC is subject to income limits:​

• Single filers: Credit phases out between $80,000 and $90,000 of modified adjusted gross income (MAGI)

• Married filing jointly: Credit phases out between $160,000 and $180,000 of MAGI​IRS+4Investopedia+4TurboTax+4TurboTax

Taxpayers with MAGI above these ranges are not eligible for the credit. ​Investopedia

What if you are the bully?