Go here for great news on American Opportunity Tax Credit.
Or here for guidelines on the credit from the IRS.
Read the above article. Talk to the individual who helps you with your taxes – make sure to take advantage of this credit.
Lord knows there is a lot of bad news when it comes to paying for college. The American Opportunity Tax Credit, formerly the Hope Scholarship, provides a glimmer of good news for 2013. President Obama’s American Recovery and Reinvestment Act of 2009 (the stimulus package) began these reforms, and the avoidance a tumble over the fiscal cliff kept them in tact for another year. And now it is tax time – make sure that you take advantage of the advantages that this tax credit provides you and your family. And if you have kids going to college next Fall make sure to file early and take care of the FAFSA as soon as possible.
- The tax credit has grown from $1800 to $2500 per year.
- While it used to be you could claim it for only two years…now you can take it for four.
- The tax credit is up to 40% refundable. After you subtract it from your tax obligation – you can receive an actual refund.
- Used to be for tuition and fees only. Now it includes course materials and computers.
- You qualify if your adjusted gross income is below $80,000 single or $160,000 married.
- There are ways to allow your child (college student) to take the tax credit. Do some research on that.