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
For single filers with income below $80,000 and joint filers with incomes below $160,000
100% of the first $2,000 in qualified tuition and related expenses; and
25% of the next $2,000 in qualified tuition and related expenses
For the parents of a dependent student or for the student if not claimed as a dependent
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.
For more information on tax credits, call the McAllen Accountants at Gonzalez & Arrambide Inc. at 956-447-9009.