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Tax Credits
The Taxpayer Relief Act of 1997 created the Hope Scholarship Tax
Credit and the Lifetime Learning Credit. The American Recovery and
Reinvestment Act of 2009 ("stimulus plan") included the American
Opportunity Tax Credit, which significantly expands the Hope Scholarship Tax
Credit for the 2009 and 2010 tax years as follows:
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The maximum credit is increasing from $1,800 to $2,500, and it consists of a
tax credit for 100% of the first $2,000 and 25% of the second $2,000 in
qualified tuition and related expenses.
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The definition of qualified tuition and related expenses now includes course
materials, such as textbooks, in addition to tuition and fees.
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The income phase-outs have expanded to $80,000 for single filers (fully phased
out at $90,000) and $160,000 for married filing joint (fully phased out at
$180,000), and the credit is no longer subjected to the Alternative Minimum
Tax (AMT).
Please be aware that the act requires the University to report information on students
to the Internal Revenue Service.
For additional information on the Hope Scholarship Tax Credit, the Lifetime
Learning Credit, and the American Opportunity Tax Credit, please refer to
the IRS Publication 970 Tax Benefits for Education at
http://www.irs.gov/formspubs/.
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