Chicago Heights, IL-(ENEWSPF)- Under the American Recovery and Reinvestment Act, more college parents and students will qualify for the American Opportunity Tax Credit.
The American Opportunity Credit modifies the existing Hope Scholarship Tax Credit. The American Opportunity Tax Credit now provides a tax credit of up to $2,500 per student, per year for qualified higher education expenses during the first four years of post-secondary education. In addition to tuition and fees, course materials also are considered a qualified expenses.
Students who receive financial aid are not eligible for the American Opportunity Tax Credit. The changes to the American Opportunity Tax Credit do not affect the Lifetime Learning Credit that is used for higher education. Students consult a tax advisor and irs.gov for more information regarding specific information on tax credits.
“The American Opportunity Tax Credit provides a good opportunity for students who are not receiving financial aid to benefit from their own personal investment in their education,” said Mary Reaves, vice president, student affairs at Prairie State College.
