However, what we students should keep in mind as our parents are filling out the taxes, is how we can save under the American Recovery and Reinvestment Act (stimulus bill).
One tax break that we are interested in is: college tuitions. "The IRS is offering the American Opportunity credit, which can be claimed for 2009 or 2010 college tuition, text books and even computers.
The credit temporarily replaces the existing Hope Credit in order to help more taxpayers, including people who don't owe tax and those with higher incomes. If you're a student and your income is $80,000 or less, you can qualify for a credit of up to $2,500 a year, an increase of $700 from the previous Hope Credit."
This is a great opportunity that students should take advantage of. The more help the better.
The other four tax breaks deal with homebuyers, energy savers, workers and car buyers. I just emphasized the college one because I believe it is the most relevant to us.
Let's just hope that there is more help coming our way guys!!!
1 comment:
It's great that there's an increase in credit to help out college students since tuition and fees have been rising. However, I'm kind of surprised that the article says that students with incomes of $80,000 or less can qualify, because isn't that almost everyone? Perhaps there is a catch that the article doesn't mention.
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