Butte College students may be eligible for a new college tax credit worth up to $2,500.
Through the American Opportunity Credit, part of the American Recovery and Reinvestment Act, students may claim up to $2,500 in college tuition and expenses including books, supplies and equipment required for a course of study on their 2009 and 2010 tax returns.
“With so many families struggling, we want students to know about their options to help pay for college and take advantage of all the tax breaks they can,” said Jacque Bradley, California Community Colleges Student Financial Aid Administrators Association President.
The full credit is available to individuals, whose gross annual income is $80,000 or less, or $160,000 or less for married couples. Even students who don’t make enough money to file a return should do it anyway because they may get up to $1,000 back.
Students with section 529 college savings plans can now spend those funds on a computer used for college. Students or parents with a gross annual income at or below $49,000 may contact the Volunteer Income Tax Assistance (VITA) program for more information and free tax preparation assistance.
To learn more about the American Opportunity Credit call 800-829-1040 or visit www.icanaffordcollege.com or www.irs.gov/recovery.