Attention MJC students! Save all your receipts for textbooks and course materials! Under the new American Opportunity Tax Credit you or your parents may be eligible for a tax credit up to $2,500!!
Under the American Recovery and Reinvestment Act's (ARRA) newly created American Opportunity Tax Credit, textbooks and other course material expenses - along with tuition and fees incurred in 2009 and 2010 not covered by scholarships or grants - may be claimed as a tax credit on that year's tax return! However, you must keep a record of your expenses to be eligible!
Here's a summary of the American Opportunity Tax Credit:
• In 2009 and 2010, tax credit of up to $2,500 of the out-of-pocket cost of tuition and related expenses including course materials paid during the taxable year
• Eligible for the first four years of college
• 100% of the first $2,000 and 25% of the next $2,000
• 40% of the credit is refundable with the maximum refundable amount of $1,000
• Phase-out for taxpayers with adjusted gross income in excess of $80,000 or $160,000 for married couples filing jointly (AGI phase out limits are $90,000 individual, $180,000 married couples filing jointly)
• Helps an estimated 4 million additional students attend college than the previous tax credit
• $13.907 billion in estimated benefits for students and families in 2009 and 2010
• President Obama has proposed to make credit permanent.
