Tax Tip- New Education Credit

[danakiess]

Here's another way to get more money back on your 2009 tax return if you had education expenses.

 

The American Opportunity Credit is a new version of the Hope education credit for tax years beginning in 2009 and 2010. (IR-2009-78)

 

• This credit is available to you the taxpayer, your spouse or your dependant.

 

• The student must be enrolled on at least a half-time basis in a degree, certificate or other program leading to a recognized educational credential at an eligible institution.

• The credit covers the first four years of postsecondary education and is allowed for 4 taxable years for each student.

• The maximum credit is $2500

• The credit is phased out for AGI beginning at $80,000 for single taxpayers and $160,000 for married taxpayers filing a joint return.

• Eligible expenses include not only tuition and fees but course materials such as books.

• The Tuition Deduction and the Lifetime Learning Credit still remain as options as education credits/deductions.

Contact me for more details on this new education credit and any other new tax legislation.

Thanks,

Dana Kiess

Accountant

Kiess Accounting & Tax LLC

T (770) 789-1256

F (770) 872-0549

kiessaccounting@bellsouth.net