The Federal Tax Credits Blog

Posts Tagged ‘tax credits for students 2010’

Question: What is the student credit TAX $2500?

Hi
I am a student my collage tuition was about 2100 and financial Aid paid about 2000, how do I know if I’m qualified for the 2500 Credit Tax?
thanks

Answer: You don’t include tuition costs paid by grants/scholarships; however, you can include student loans and out-of-pocket tuition paid. The credit offsets your tax liability. If you don’t have any tax liability, the 40% of the credit is refundable.

If you only paid $100 in tuition and had no student loans, then you could receive $40 back (assuming you have no tax liability).
If you had $10,000 in student loans and paid $100, then you would use the maximum $2,500 for the credit. This would give you a refund of $1,000 (assuming you have no tax liability).

Tax Break for Gun Buyers in the Works

West Virginia lawmakers want to give gun buyers an annual break from the state sales tax.

Hefty Tax Returns for Parents and Students