Comments on: Hope Credit and the American Opportunity Tax Credit

By: Tim

Tim — Thu, 29 Dec 2011 19:05:22 +0000

The American Opportunity Credit says that it can only be used for 4 years… I used the Hope credit in the past, do I need to count those years against my American Opportunity Credit – i.e. 2 years of Hope, 2009- and 2010 for American Opportunity Credit – can I claim 2011?

By: 10 Expiring Tax Cuts to Watch For | taxgirl

10 Expiring Tax Cuts to Watch For | taxgirl — Mon, 06 Dec 2010 13:22:09 +0000

[...] tax breaks are also set to expire, such as American Opportunity Tax Credit and Federal Home Energy Tax Credits. Also affected by the sunset are AMT provisions, adoption [...]

By: Mark

Mark — Fri, 05 Mar 2010 18:57:29 +0000

I was especially thrilled to see item #8. however, i couldn’t find anything in the act that specifically addressed student loans as a form of paying for educational expenses. i mean it makes sense but…

thanks!

By: Tom

Tom — Fri, 29 Jan 2010 02:08:51 +0000

Are the counties declared as midwestern disaster areas for 2008 still considered midwestern disaster areas for 2009 Hope credits?

By: Alyssa

Alyssa — Thu, 07 Jan 2010 17:44:10 +0000

It has taken me a little more than 4 years to complete my 4 year degree..so since I am in year 5 1/2, am I eligible for the credit?

By: Tamza

Tamza — Fri, 02 Oct 2009 07:24:54 +0000

So if it is a CREDIT and I do not have any income will I be getting the credit as a refund .. since there is no tax to offset?

By: Mary O'Keeffe

Mary O'Keeffe — Fri, 11 Sep 2009 17:09:06 +0000

Thanks for the great summary, Kelly.

Under the old Hope credit rules, taxpayers could only count the cost of books toward the credit in very rare and hard to verify circumstances. (See examples 1 and 2 at this link for 2008 tax benefits for education: http://www.irs.gov/publications/p970/ch02.html#en_US_publink100020770)

You are right that textbooks can be expensive. For some community college students in the area our VITA site serves, the cost of their textbooks actually exceeds the cost of their tuition, so they have understandably disappointed to learn in the past that their book expenses didn’t qualify towards the education credit.

It’s very timely to remind people now, because people are buying textbooks right now and they need to save their receipts. It’s also a good idea to save syllabi showing that the books were indeed “needed for their course of study,” especially if that connection might not be obvious. (For example, the IRS is probably not going to question an organic chem textbook purchased by a chemistry major, but an English major purchasing novels required for her literature class might want to be especially careful.) Professors can help by keeping their syllabuses available on-line, leaving archives up even after the class is over. My course has a Facebook page that includes my syllabus.

By: Kelly

Kelly — Fri, 11 Sep 2009 16:52:53 +0000

Helen,
Thanks for bringing that to my attention!
The funny thing is, I kept reading it over and over and I didn’t see it…

By: Hope Credit and the American Opportunity Tax Credit | taxgirl | Master Your Finances

Fri, 11 Sep 2009 16:38:37 +0000

[...] rest is here: Hope Credit and the American Opportunity Tax Credit | taxgirl Share and [...]

By: Helen

Helen — Fri, 11 Sep 2009 16:26:43 +0000

Hi TaxGirl,

I think you have a couple of typos in #6 “…is $80,000 or less ($160,000 or less…”.

I don’t mean to nitpick. I think you have a great blog, and I enjoy reading it.

Thanks!