Well, it's December 31st and this is a significant date inthe world of financial aid. First of all the 2010-2011 FAFSA will be available tomorrow for completion!! Make sure you have a pin number and remember, you will be estimating your 2009 income to use on this form until the actual returns are filed.
Secondly, beginning for the 2009 tax year, the federal government has put into place what is called the American Opportunity Tax Credit. This tax credit takes the place of what was previously known as the Hope Tax Credit. It is improved from the Hope credit in several ways. The maximum credit which will be available for 2009 and 2010is increased to a maximum of $2500. Taxpayers will receive a tax credit based on 100percent of the first $2,000 of tuition, fees and course materials paid during the taxable year, plus 25 percent of the next $2,000 of tuition, fees and course materials paid during the taxable year. This is different that the tuition and fee deduction which adjusts the gross income. You can't take both the tution and fee deduction and the tax credit. For most people, the tax credit is more beneficial because it actually lowers the tax liability rather than just reducing the income by a certain amount. For more details, see the following link:
www.irs.gov
There are certain income limitations and other relevant information. Once in the IRS website, put American Opportunity Tax Credit in the search engine for a Q and A.
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About Me
- Susan L. Mead
- Well, I like to think of myself as someone who is informed, educated and able to discuss almost anything with anyone on some level. I have strong opinions on topics, but offer them gently. I have worked in higher education for all of my professional career both as an administrator and a faculty member and I see that the values I bring to my life professionally are a mirrored reflection of the values I live by personally. How can it be any other way? I try and bring knowledge, experience and a lot of common sense to everything I do. When it all gets crazy, I try to laugh a lot and always remember that tomorrow will be a better day. I am who I am today, because of the people who have helped to shape my life-you know who you are!! I hope in some small way, I will help to shape the lives of others whom I may touch inside and outside of this blog.
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