American Opportunity Credit

Under the American Recovery and Reinvestment Act of the 2009, the American Opportunity Credit allows taxpayers to get a credit on their 2009 and 2010 tax return of up to $2,500.

How can you qualify for the credit?

1. You must be enrolled in a program that leads to a degree, certificate or other recognized educational credential.
2. You must be enrolled as a full time student for at least half of the school year.
3. You cannot have any felony drug convictions.
4. The credit can only be taken for the first four years of education.

What expenses qualify for the credit?

1. Tuition and fees
2. Course materials as long as they are required by the institution.

This means books, supplies, lab supplies, calculators, and yes even a COMPUTER as long as is is required the by institution.

You can find out more from the IRS website or you can email me and I will do my best to answer your questions.

And that's a wrap

As the tax year begins to wrap up, many of you may be wondering "how much will my refund be when I file my 2010 tax return," or "how much will Uncle Sam take from me this time?" 

Thanks to our good friends (just joking) at the IRS there is a Withholding Calculator that can help you determine whether you are having enough withheld by your employer.  Check it out before the year comes to an end.

Visit our blog next week for more tax tips.