Since 2001, we provide tax expertise & strategies for: Corporations, Partnerships, LLCs & Trusts.

Available Tax Credits for Higher Education.

TaxBizPro, LLC Posted on: September 3, 2010 11:25

If you are thinking or already attending a college, university or a graduate school, then you should know about several educational tax credits that you can claim on your personal income tax return.  If you are a dependent, your parent(s) can claim those credits on their personal income tax return. This article addresses The American Opportunity Credit.

• You can claim The American Opportunity Credit tax credit on form 8863* for tuition and certain school fees paid for higher education in 2009 and 2010.

• This credit can be claimed for expenses paid for any of the first four years of post-secondary education.

• In order to completely benefit from this tax credit, your income (modified adjusted gross income) must be $80,000 or less – for single filers and $160,000 or less – for joint filers.  If you make over these amounts, this tax credit will start to decrease accordingly.

• You can claim up to $2,500 a year.  It’s based on a percentage of the cost of qualified tuition and related educational expenses paid during the taxable year for each eligible student.

• Qualified tuition and related expenses also include, expenses paid for required course materials: books, supplies and equipment required for a course of study.

• If you do not owe any taxes for 2009 or 2010, you still can receive forty percent or up to $1,000 of the credit for each eligible student as cash refund.
Form 8863, Education Tax Credits

Posted in:Personal Tax ArticlesThis article was written by TaxBizPro, LLC 2023, all rights reserved ©.  

Comments are closed.

Important Tax Disclosure
IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.

1501 Broadway 12th Floor
Manhattan, NYC, 10036 USA
(212) 465-3337