What began as the Hope Scholarship Credit has morphed into the American Opportunity Tax Credit (AOTC). Set to expire at the end of 2010, Congress first extended it through the end of 2012 under the Tax Relief and Job Creation Act of 2010, and further extended it through the end of 2017 under the American Taxpayer Relief Act of 2012.
The AOTC expands on the original Hope Credit in a number of ways. If you are attending college, or if a dependent of yours is attending college, the possibility of claiming the AOTC during the first four years of post-secondary education should not be overlooked.
When determining the amount of qualified higher education expense (QHEE) to use for the purpose of claiming the credit, remember to include:
- Activity & center fees;
- Books & study materials;
- Equipment (including lab equipment, computer purchased for studies, etc.)
Other criteria apply, and the credit may be limited based upon income; nevertheless, the possibility should be explored go to these guys. Please be sure to mention higher education when discussing your tax matters with us.