Education can be pricey, but you may be able to claim a tax credit for some of your expenses.
FOX Business Network’s Tracy Byrnes reports in “Tracy’s Tax Tips”:
The American Opportunity Tax Credit was a centerpiece of the 2009 stimulus bill and it expanded the existing Hope Credit.
I’m Tracy Byrnes with the FOX Business Network here with Tracy’s Tax Tips.
Now the credit is based on 100% of the first $2,000 of tuition and related expenses, that includes books paid during the year, plus 25% of the next $2,000 of tuition and related expenses paid during the tax year. The amount of the credit begins to decrease for singles with incomes at $80,000 and for joint filers at $160,000.
Now the maximum “higher education tax credit” you can get is $2,500 for the first four years of college.
Use IRS Form 8863 to claim the American Opportunity Tax Credit, and check out IRS Publication 970, which is your qualified education expenses publication for more information. And as an aside — the American Opportunity Credit was originally supposed to end in 2010, but the so-called fiscal cliff extended it another five years.
I’m Tracy Byrnes, FOX News Radio.