Best News Ever! American Opportunity Tax Credit Extended Until 2012!!!!

Discussion in 'General Distance Learning Discussions' started by Maniac Craniac, Dec 22, 2010.

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  1. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    The American Opportunity Tax Credit has now been officially extended until the year 2012. This means, for me, that I will actually be able to afford my degree, even if I can't get any financial aid. I hope everyone on this board who is working on their first bachelor's degree is familiar with these tax credits. If not, read up on it ASAP, take advantage of the time remaining in 2010 to use this credit, then try to use it to the full for 2011 and 2012!!!

    For more information:

    IRS P970 .PDF

    About.com - Taxes - American Opportunity Tax Credit

    Obama Addressing the Press
     
    Last edited by a moderator: Dec 22, 2010
  2. AUTiger00

    AUTiger00 New Member

    Wish tis was applicable to graduate studies.
     
  3. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    Understandably, this credit applies only to those who are degreeless- getting that first degree can start a career that may pay for further degrees. However, The Hope Tax Credit applies to any type of education and can be used an infinite amount of times. If you haven't heard of it, information can be found in the .pdf I linked to above. If you have some strong justification for how your degree relates to either your job, a business you own, or freelance work, you can deduct all of your tuition, which might save you even more money than using the Hope Tax Credit.
     
  4. truckie270

    truckie270 New Member

    I think you may have the Hope and the Lifetime Learning credit mixed up. The Hope is limited to the first two years of post-secondary study and an individual can only claim it for two years. The Lifetime learning is the one that is limitless.

    I have used these for some time for both my wife and I. A couple of years ago I ran the numbers and found that claiming my educational expenses as "unreimbursed employee expenses" pays a larger return because it is not subjected to the limitations of the Lifetime credit. YMMV.
     
  5. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    Yes, WHOOPS! Sorry, the Lifetime Learning credit is the one that I was referring to.
     

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