Tax Credit For College Tuition Killer Professional Advice.
Tax Credit For College Tuition Changes And Qualifications
The American Opportunity Tax Credit replaced the Hope Scholarship Tax Credit.For 2009 and 2010, you can claim a credit of up to $2,500 of the cost of tuition and expenses paid during the taxable year, for four years of college. The old Hope Tax Credit was offered only for 2 years of college.Taxpayers with a higher income or those who do not owe taxes are now eligible for this new tax credit for college tuition.The phase out begins at $80,000 of adjusted gross income for individuals who file separately. For married taxpayers who file jointly, the income limit is $160,000.
American Opportunity Tax Credit Is 40% Refundable
If the amount of tax credit for college tuition you are eligible for exceeds your tax liability amount, 40% of the credit value is refundable. In addition, using this tax credit for college tuition, you may offset the alternative minimum tax you may owe.