An American Opportunity Credit For 2013 which was earlier known as Hope Credit can help you get your money back for all those expenses you paid during the first four years of post-secondary education. This educational tax credit was expanded as a part of American Recovery and Reinvestment Act. However; it is believed that American Opportunity Credit For 2013 is 40 % which is refundable, which means you can claim and receive up to $1000.
Majority of the college students aren’t aware of this facility thus throws away about $2500 taxes. Under American Opportunity Credit For 2013 program you can claim up to $2500 tax by saving the receipts for your qualified expenses such as equipment required for the class, tuition, supplies, and textbooks. If the student has no or little tax liability then he/she can earn up to $1000 as refunds.
The good news is in the coming year i.e. 2013; this opportunity has been extended and found it to be made permanent. Under this facility, the college students will be only able to claim the taxes for their school expenditures for their first 2 years from an eligible educational institution. The primary aim to have this facility made permanent is to increase the college attendance thus; American Opportunity Credit For 2013 allows more credit to the students.
To avail these benefits, there are certain criterions to be fulfilled such as:
- You must be enrolled in the school half of the time for at least one academic year period
- If you already a felony drug conviction then you cannot claim
- You cannot claim a credit for professional and graduate level program
- You get claim up to $2500 per year
- You must pay the educational expenses of an eligible student
- Being an eligible student, your dependent, your spouse etc. you can claim an exemption on the tax return.
With appropriate tax calculator, you will be able to calculate your taxes so that you are at least aware of the rough amount which you will be getting as a refund.