The American Opportunity Tax Credit is a partially refundable tax credit detailed in Section 1004 of the American Recovery and Reinvestment Act of 2009.
The act specifies:
- Provisions are specific to tax years 2009 and 2010 (since extended through 2017) for the first 4 years of post-secondary education.
- Increases the Hope Scholarship Credit to 100 percent qualified tuition, fees and course materials paid by the taxpayer during the taxable year not to exceed $2,000, plus 25 percent of the next $2000 in qualified tuition, fees and course materials. The total credit does not exceed $2500.
- 40% of the credit is refundable.
- This tax credit is subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly).
The act directs several Treasury studies:
- Coordination with non-tax student financial assistance;
- Coordinate the credit allowed under the Federal Pell Grant program to maximize their effectiveness at promoting college affordability;
- Examine ways to expedite the delivery of the tax credit;
- With the Secretary of Education, study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account.
Read more about American Opportunity Tax Credit: History
Famous quotes containing the words american, opportunity, tax and/or credit:
“Americans living in Latin American countries are often more snobbish than the Latins themselves. The typical American has quite a bit of money by Latin American standards, and he rarely sees a countryman who doesn’t. An American businessman who would think nothing of being seen in a sport shirt on the streets of his home town will be shocked and offended at a suggestion that he appear in Rio de Janeiro, for instance, in anything but a coat and tie.”
—Hunter S. Thompson (b. 1939)
“To be faced with what so-and-so’s mother lets him do, or what the teacher said in class today or what all the kids are wearing is to be required to reexamine some part of our belief structure. Each time we rethink our values we reaffirm them or begin to change them. Seen in this way, parenthood affords us an exceptional opportunity for growth.”
—Ruth Davidson Bell (20th century)
“...many tax collectors and sinners were also sitting with Jesus.”
—Bible: New Testament, Mark 2:15.
“Gratitude among friends is like credit among tradesmen: it keeps business up, and maintains commerce. And we pay not because it is just to discharge our debts, but that we might the more easily find lenders on another occasion.”
—François, Duc De La Rochefoucauld (1613–1680)