There are many tax credits this year that can put money back into your pocket. Among these are the making work pay, first time homebuyers, energy star savings, and the American opportunity tax credit. As part of the American Recovery and Reinvestment Act ARRA you are able to take advantage of many tax credits that are being offered for the 2009 and 2010 year.
The American Opportunity tax credit is available to anyone who attended a degree or certificate program last year for at least half of the year. You can claim the credit if you, your spouse or one of your children attended school last year. The credit allows you to deduct up to $2,500 for expenses such as books, tuition and fees, and other materials.
You are able to take a credit up to $2,500 but only $1,000 is actually refundable. This means that if it comes down to it and you are going to receive a tax refund; you will only be able to access $1,000 of this credit as a refund.
In order to qualify, you, your spouse, or dependant must have attended school at least half time in an attempt to receive a degree or certificate. This credit is only available to students in their first four years of school. Sorry graduates. In addition, you or the person claiming the credit can not have any felony charges.
There are many tax credits and deductions available this year thanks to the American Recovery and Reinvestment act. Healthy Financial Habits will keep you updated this tax season with lots of ways to save you money on your taxes.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Mike Smitt