2009 Tax-Education Credit/Hope Credit

The American Opportunity/Hope Credit modifies the existing Hope Credit for the 2009 and 2010 tax years.

The 2009 American Opportunity/Hope Tax Credit:

• 100% of the first $2,000 of qualified expenses paid (Hope Credit)
• 25% of the next $2,000 of qualified expenses paid (American Opportunity Credit)

Phase-out Ranges:

• Married filing jointly phase-out range: $160,000 - $180,000
• Single and Head of Household phase-out range: $80,000 - $90,000
• Married Filing Separately: no credit is allowed

Notes:

• Maximum benefit: $2,500 per student
• Up to 40% of the American Opportunity Credit is refundable
• Qualified expenses: tuition, fees, and course materials required for enrollment at an eligible institution.
• Available for the first four years of education