Tuesday, March 23, 2010

The Hope Credit

The Hope Credit--money for tuition and related expenses--can now be claimed for four years of college instead of just the first two, including the cost of course materials. The newly named American Opportunity tax credit lets you claim up to $2,500 per student, but starts phasing out with an income of $80,000 for singles and $160,000 for marrieds.

Also, don't forget to withhold the interest you're paying on student loans, although that deduction starts to disappear at $60,000 for singles and $120,000 for marrieds. Generally, if you paid more than $600 in interest to a financial institution, you'll get a 1098-E form as documentation. If you didn't, call the company servicing your loan and ask how much interest you paid in 2009.

2 comments:

tatiana said...

I just wanted to share my apprection for the site you’ve created. I tried to enroll in your class but it was too full and closed. However, discovering your site was the best thing that happened to me this semester. I found so many helpful ideas and techniques. Thank you so much professor andrews. I hope I could make it in next semester.
Tatiana
COD student

The Search for Scholarships said...

Thanks. So glad the the research is useful to you.