There are a number of education credits available to individual taxpayers for 2009 and 2010 including the American Opportunity Tax Credit.  This new credit replaces the old Hope education credit that was limited to $1,800 per eligible student for qualified tuition and related expenses paid for the first two years of post-secondary education.

The American Opportunity Credit limit is $2,500 per eligible student per year based on 100% of the first $2,000 and 25% of the next $2,000 of eligible expenses.  Plus the credit is allowed for the first four years of post-secondary education in a degree or certificate program. 

The credit phases out at certain income levels and a portion may be refundable depending on the circumstances.  Ask us for more information when you make your tax appointment.