Going to school can now save students and parents money when it comes to filing taxes.
The American Opportunity Tax Credit was passed by Congress under the American Recovery and Reinvestment Act and is an extension of the Hope education tax credit.’
The tax credit will allow students and parents to save money by being able to write off things like tuition, supplies and books for the school year.
‘Individuals seeking higher education will benefit from this program,’ Ryan Huene, junior business major, said. ‘It will give relief to people who need a tax break to get a good education.’
Assistant professor of business administration, Marylou DeWald said she sees the tax program as a benefit to current students as well as potential students.’
‘It encourages people to stay in school and gives incentives for people thinking about going back to school,’ she said.
Junior business major Rebekah Seymour said she is still claimed as a dependent by her parents but will encourage them to take advantage of the tax credit.
‘I think the tax credit will be a great benefit to students and their families.’ It offers a new opportunity to write money off on taxes for getting an education.’ It is a win, win situation,’ she said.
The tax credit can be redeemed for the first four years of a person’s college education and is worth up to $2,500 in tax credit per year.’ To be eligible, the taxpayer has to make a gross income of $80,000 or less a year and fill out a 1040 or 1040A tax form.
Seymour has confidence in the tax credit program.’ ‘I think it will be a good program as long as people know about it and are educated as to what it actually is and what they can get out of it,’ she said.
‘I think this is a good way to persuade people to seek higher education who might not have if the tax credit did not exist,’ Huene said.
DeWald encourages students, parents and community members to take advantage of the OU tax clinic that starts in February.
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