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College Tax Credit

College Tax Credit

Attending college is very expensive. College students are more in debt even before they receive their degrees. Congress enacted a new college tuition tax credit for 2010-2012:

The American Opportunity Tax Credit

Worth up to $2,500

Ÿ For single filers with income below $80,000 and joint filers with incomes below $160,000

Ÿ 100% of the first $2,000 in qualified tuition and related expenses; and

Ÿ 25% of the next $2,000 in qualified tuition and related expenses

Ÿ For the parents of a dependent student or for the student if not claimed as a dependent

Ÿ 40% of the credit ($1,000) is refundable

This tax credit is designed to alleviate some of the stress caused by high tuition and college expenses.

Contact Us

For more information on tax credits, call the McAllen Accountants at Gonzalez & Arrambide Inc. at 956-447-9009.