If you are like most Americans, you are scrambling to figure out how you can claim as many expenses on your taxes as you can. What are you entitled to, and does the fact that you’ve paid through the nose for your education make a difference to our government? Good news – under the American Recovery and Reinvestment Act (ARRA) more parents and students will qualify over the next two years for the American Opportunity Credit to pay for college expenses. This new credit modifies the Hope Credit for the 2009 and 2010 tax years. The modification is good news for students of all ages and income levels as the Hope Credit is now available to a broader range of taxpayers, and covers more elements of the college experience including the cost of course materials. Also, the credit can be claimed on four post-secondary education years instead of two. There is a maximum annual credit of $2500 per student. For more information on this credit and others that you may be eligible for, visit www.irs.gov
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