OLYMPIA, Wash;--College students and their families can now claim the American Opportunity tax credit for tuition and other college related expenses.
This is not a completely new idea, but rather a successor of the Hope credit tax return. The big difference is the maximum return has been raised to $2,500 a year, and is no longer limited to just the first two years of school, but all four.
However, Gary Larson of the Higher Education Coordinating Board says this new option might not be for everybody.
"So I mean certainly all students who are incurring, you know, tuition and other expenses should take a look at this to see if it's something that might be of benefit to them as they are filing tax returns. But individual circumstances are going to differ," says Larson
If this sounds like something that could help you, the full tax credit can now be claimed for any expenses from the 2009 and 2010 tax years. The credit is available to taxpayers with an income of less than $80,000 or $160,000 for joint incomes.