Textbook Tax Credit: Are You Eligible?
There’s been a lot of talk lately about the American Opportunity Tax Credit for 2009 and 2010, but a lot of parents and students are still asking themselves, “What does that mean for me?”
Here’s a little bit of information we hope will clarify everything and help you get the maximum credit.
What’s covered?
According to the IRS this credit is available to cover up $2,500 in tuition costs, required course materials, and supplies that are paid out of pocket which are not covered by grant or scholarship aid. This means that any school related expense that is paid by a student or parent can be recovered.
Is the tax credit refundable?
Up to 40% of the approved credit, a maximum of $1,000 can be refunded.
What do I need to prove I qualify for the credit?
The credit can be claimed by filling out form 8863 (see link below for instructions). You may also be required to provide proof of the expenses, which may include (but are not limited to) course transcripts that show a description of the class and enrollment dates, a list of required materials such as a syllabus and/or a canceled check or receipt showing the total amount spent on materials.
Is this tax credit permanent?
Unfortunately the credit is not permanent and only eligible for 2009 and 2010, but legislation has been proposed to extend the credit.
Useful Links
http://www.textbookaid.org/Default.aspx