FLINT — As a student, you’re obviously concerned about earning college credits, but officials at Mott Community College want you to be aware of an extra credit the federal government offers you as a reward for your higher education.
The American Opportunity Tax Credit, unlike past federal tax credits, has a “refundable” portion of up to $1,000. This means that a tax filer could get a check for up to $1,000 over and above any amounts paid in through withholding or estimated payments.
While many students at Mott Community College qualify for financial aid and grants, there are a number of students who will pay or borrow for tuition and other educational expenses via payment plans, cash, checks, student loans or credit cards. MCC wants current and prospective students to know that the American Opportunity Tax Credit, allowing a federal tax credit of $1,000 to $2,500, is available for out-of-pocket payments for tuition, fees and required class supplies.
According to the IRS and the U.S. Department of Education, a number of tax filers fail to take advantage of the higher education tax benefits available to them. The American Opportunity Tax Credit can be claimed for expenses for the first four years of post-secondary education, which includes expenses for course-related texts, books and supplies.
Taxpayers can receive a tax credit based on 100 percent of the first $2,000, plus 25 percent of the next $2,000, paid during the taxable year for tuition, fees and course materials. Generally, a taxpayer whose modified adjusted gross income is $80,000 or less ($160,000 or less for joint filers) can claim the credit for the qualified expenses of an eligible student. And with MCC’s low tuition rates, $2,500 would go a lot further than it would at most colleges.
Details: www.irs.gov/newsroom/article/ 0,,id=211309,00.html. — G.G.