Student Tax Credit Stimulus
July 9th, 2008
Question: Details of New 2009 & 2010 Tuition Tax Credits…?
I read an article in my local paper yesterday about the new tuition tax credit that was part of the Stimulus package, where you get a $1 for every $1 paid in tuition, up to $2,500.
I am currently Unemployed, and my sole source of income for 2009 has been UI benefits. However, I am also a FT student via a distance learning program, pursuing a BS. I have paid well over $2,500 in tuition this year, and the school is fully recognized.
Does this mean that I will likely qualify for the credit? Also, assuming I don’t have any liability (I am Head of Household with a small UI check), will I be able to have the $2,500 as cash in a refund?
Thank you!
Answer: You’re talking about the American Opportunity Tax Credit, which replaces and expands the Hope Credit. Your understanding on the calculation isn’t quite correct, and only part of it is refundable so if you don’t owe any tax you don’t get the entire credit. The first $2000 is dollar for dollar, and over that it’s 25%, so your credit would probably work out to $2100, and if you have no tax liability, up to 40% or $840 would be paid to you. Still a nice chunk of money.
See http://www.irs.gov/newsroom/article/0,,id=211309,00.html
Holland District Offers Advanced Classes
Several new opportunities are becoming available for students at the Holland Central School District. Advanced placement (AP) classes in the sciences may be offered next year to give students a head start at college, while a tutoring program has just started that provides older students an incentive for tutoring younger classmates.
Economic Stimulus Plan | Tax School | Tax Education | Liberty Tax Service
Related posts
Posted in Tax Credit Stimulus | 
Tags: college_productivity, finance, financial_aid, january09, student_loans