Tax Credit for Textbooks and More!
Author: Nicole Soucy, Senior Writer, Bay Path College
Through the American Recovery and Reinvestment Act—also known as the Recovery Act, Bay Path College students and their families may be eligible to receive the American Opportunity Tax Credit, formerly the Hope Credit. The American Opportunity credit may be claimed for textbook and other course material expenses—along with tuition and fees incurred in 2009 and 2010 not covered by scholarships or grants—on that year's tax return. You must keep a record of your expenses to declare eligibility.
American Opportunity Tax Credit at a Glance
- A tax credit of up to $2,500 for out-of-pocket costs for tuition and related expenses (100 percent of the first $2,000 and 25 percent of the next $2,000), including textbooks and course materials, paid for during the taxable year in 2009 and 2010.
- Students are eligible for the first, four years of college
- Forty percent of the credit is refundable with the maximum refundable amount of $1,000
- The phase-out for taxpayers with adjusted gross income in excess of $80,000 or $160,000 for married couples filing jointly (adjusted gross income phase-out limits are $90,000 individual, $180,000 married couples filing jointly)
- The plan will help an estimated 4 million additional students attend college
- The plan will provide $13.907 billion in estimated benefits for students and families in 2009 and 2010
For more information on the American Recovery and Reinvestment Act and American Opportunity Tax Credit, visit www.textbookaid.org.