Good News For Parents: Extended tax credit for college

Posted on July 28, 2009
Filed Under money | By Irene Starygina

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Some parents don’t waste any time putting away money for college tuition. Since the day their child is born, every dollar these moms and dads spend on baby food is matched by a deposit into a savings plan. But the majority of American households don’t even come close to having a lump sum to cover their son’s or daughter’s tuition in full. While scholarships, student loans and financial aid can dramatically reduce the cost of college, paying for tuition is still a struggle for a lot of families.

Now, some households that have traditionally been exempt from receiving financial aid because they’re in a higher income bracket are getting some relief in these tough economic times through the American Opportunity Credit. According to UniversityParent.com,

The American Opportunity Credit is designed to help parents and students pay part of the cost of the first four years of college. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers, including many with higher incomes and those who owe no tax.

We all know that textbook and supply costs add up to hundreds of dollars per semester. The good news is that the American Opportunity Credit can also be applied to expenses like books and computer equipment. For more information on the tax credit, read New Tax Benefits Available for College Parents and visit Unigo’s Financial Aid section.

Photo courtesy of Photos8.com

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