College Costing too Much? Get Some of that Money Back

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Tuition fees, room and board, book fees, and lab fees are just the tip of the iceberg when it comes to education expenses. Thank goodness the IRS helps taxpayers out. The Hope Credit for education expenses has been around for years. Originally the Hope Credit was for the first two years of college, and had a lot of stipulations on what expenses qualified. With the American Recovery and Reinvestment Act of 2009 (the biggest tax change this year) the American Opportunity Credit arose.

This credit is available on 2009 and 2010 tax returns, and involves many changes to the old Hope Credit. Here are a few that are quite a break:

• Available to higher income individuals
• Available to those who have no tax liability
• Makes required course materials an acceptable expense
• Can be claimed for the four post secondary years not just the first two

Enjoy your schooling and stop stressing about the expenses, keep good records, and at the end of the year you could receive a break. If you have more questions check out the following link to the IRS. http://www.irs.gov/newsroom/article/0,,id=205674,00.html

Nikki McDonald is a certified Tax Professional. These tips are not meant to be a policy but meant to guide you in your own unique tax situation. Remember, no one can assist you better than your own personal tax associate.