With tax season among us this tip from your Louisville CPA could save you thousands!
College students and their families could save up to $2500 a year if they save receipts for necessary expenses such as textbooks and other course materials.
The American Taxpayer Relief Act (Fiscal Cliff) extended this credit through 2017. This is a big win for parents with college students.
The National Association of College Stores and its more than 3100 member stores are encouraging students and their families to take advantage of the American Opportunity Tax Credit. Families should consult Lindemeyer CPA on their eligibility for the tax break and keep records of eligible course material expenses incurred.
The American Recovery and Reinvestment Act of 2009 made textbooks and other academically required course materials eligible for a tax credit for the first time. The credit covers textbooks and other course material expenses – as well as tuition and fees not covered by scholarships or grants up-to $2500 each year for the first four years of college. Forty percent of the credit is refundable.
According to an October 2010 study by the Treasury Department AOTC recipients in 2009 received an average tax credit of more than $1700. In addition 4.5 million students and families received a tax refund from the AOTC in 2009 with an average value of $800. The Treasury Department projects the AOTC will provide nearly $19 billion in credits to over 9 million families in 2012.
WIth tax season nearing it’s crucial for families with college students to take advantage of this important credit. If you’re looking for a new Louisville CPA firm to help you this year contact us at Lindemeyer CPA.