You can claim a tax credit of up to $ 2,500 of the cost of tuition and expenses paid during the taxable year. You can do this for fours years.
American Opportunity Tax Credit – An Expansion Of The Hope Scholarship Tax Credit
The American Opportunity Tax Credit is an expansion of the old Hope Scholarship Tax Credit offered for only two years of post-secondary or certificate education.
Taxpayers with a higher income or those who do not owe taxes are now eligible for this credit. The graduate students are not eligible.
Qualifications
You may qualify for this credit, if your adjusted gross income is $80,000 or less.
The income limit if you are married and you are filing a joint return is $160,000.
American Opportunity Tax Credit Details
Your tax credit is equal to 100% of the first $2000 of tuition and related expenses (including course materials and books) and 25% of the next $2,000 of tuition and related expenses paid during the taxable year. You will receive a refund of 40 percent of the credit.
Still Need Assistance With The American Opportunity Tax Credit, Contact Us Today!
Tax News Updates:
Small US Wind Farms to Grow as Tax Incentives Expand
By Justin Doom on May 15, 2012 Installations of wind farms with less than 20 megawatts of capacity may rise to a record this year if lawmakers expand a federal tax credit. At least 44 wind farms were built last year to serve individual US communities, ...
Small US Wind Farms to Grow as Tax Incentives Expand
Installations of wind farms with less than 20 megawatts of capacity may rise to a record this year if lawmakers expand a federal tax credit. At least 44 wind farms were built last year to serve individual US communities, often with financial support ...
Making college more affordable
He created the American Opportunity Tax Credit worth up to $10000 for four years of college, helping middle class families afford college. He capped student loan payments at 10 percent of monthly income so students are better able to manage monthly ...
Wind industry's future in question as tax credit nears end
The credit provides wind developers a tax break of 2.2 cents per kilowatt-hour for the power they generate from utility-scale wind projects for the first 10 years of production. It's set to expire Dec. 31. For the pass — one of three pioneering wind ...
