American Opportunity Tax Credit

American Opportunity Tax Credit

The American Opportunity Tax Credit is a refundable tax credit for undergraduate college education expenses. This credit provides up to $2500 in tax credits on the first $4000 of qualifying educational expenses. This Tax Credit is will be available for the years 2009 through 2017, unless Congress decides to extend it.

This credit “phases-out” at higher incomes for single and married tax filers; for single the credit begins to reduce at $80,000, and is completely eliminated at $90,000. For Joint Returns the credit begins to phase-out at $160,000 and is completely gone at $180,000.

For more details either contact me or review IRS Publication 970.