American Opportunity Tax Credit, up to $2500

[Russ&Caro 1,549]

Hey all,

Considering we're nearing the end of the 2016 tax year, I'm throwing out a reminder of a tax credit that you will not want to ignore or forget.

If you paid tuition and other education expenses toward a degree or certificate program during 2016, then you probably qualify for this tax credit. I was unaware of this credit until a week ago. My wife is going through a re-education and re-certification process for her established career of nursing. We spent almost $1,000 last fall in tuition, books, uniform expenses.

It turns out, we're getting back every penny of these costs by using the American Opportunity Tax Credit. Here's the IRS link to explain if you qualify:

https://www.irs.gov/uac/american-opportunity-tax-credit-questions-and-answers

This credit applies to tax year 2016 and it appears the program is extended through 2017, too. If a computer is required for your classes, you may also qualify to apply the cost of the computer to this credit, as well.

Note, tax credits are significantly better than tax deductions. Tax deductions drop your taxable income allowing you to get back 15% or 25% of the total deduction. Tax credits drop your actual tax paid, dollar for dollar, so you get back 100% of the credit that you qualify for.

Also note, this credit is for legal immigrants only. This is one gift we get for "doing things right."

I hope this information is useful to you.

[f f 725]

do expenses paid for attending high school count or is it just post secondary schooling?

just answered my own question. high school does not count.

Edited December 20, 2016 by f f

[lilygracexx 22]

thank you for this information