Guest post by Vielka Burey-Jacas (@VielkaBurey)
Since tax season is upon us, I would like to take the opportunity of talking of little known existing tax credits. We will begin this week with American Opportunity Credit.
American Opportunity Credit
- Not everyone is familiar with this tax credit extended through 2012.
- It is available up to $2,500 of college tuition and related expenses paid during the year
- A full credit is available to individuals with adjusted gross income of 90,000.00 or 180,000 for married couples
- Covers all four years of college
What are qualified tuition and related expenses?
- Tuition and fees a student is required to pay in order to enroll or attend a college
- Expenses were paid between Jan 1 and Dec 31 of a given year
- Do not include amount paid for books, room and board, supplies, equipment or insurance
- One can claim no more than 4 yrs for the American Opportunity , there is no limit of years for the Lifetime Learning Credit
- The amount of the American Opportunity Credit is 100% of the first $2000 and 25% of the next 2000 of qualified tuition and related expenses
- If you are a nonresident alien, you are unable to claim these tax credits
To learn more about the American Opportunity Credit, visit the IRS website.
I do welcome an interactive article, so please post your suggestions and financial topics you would like to know more about.
ABOUT THE AUTHOR: Vielka Burey Jacas is a Certified Financial Planner and a volunteer expert at LifeTuner. Vielka has a passion for helping family, students, homeowners, businesspersons, employees and other Latino community members expand their opportunities through improved financial literacy, and has extensive experience in the private banking and investment planning sector, having spent many years with both domestic and international banks.