An AOTC Tax Filing Reminder from Rep. Chaka Fattah: Now Is the Time to Claim Your Higher Education Tax Credit

WASHINGTON, April 5 /PRNewswire-USNewswire/ -- With the April 15 tax filing deadline fast approaching, Congressman Chaka Fattah (D-PA) issues a public service reminder to college students and their families: Now is the time to claim the new $2,500 American Opportunity Tax Credit for your higher education expenses in 2009.

Rep. Fattah is architect of the AOTC legislation, enacted as part of President Obama's American Recovery and Reinvestment Act. The American Opportunity Tax Credit is designed to help low and moderate income students meet their college expenses.

"I join President Obama in working toward the goal of a college education for every American," Fattah said. "We just took a major step with the President's signing on March 30 of the college loan reform and increase in Pell Grant funding.

"We must keep raising the bar of expectation for all of our young people and other aspiring students," he said. "The American Opportunity Tax Credit is a significant step toward making college affordable to all."

Fattah introduced the AOTC on the first day of the 111th Congress. The tuition credit, modeled after a plan advocated by candidate Barack Obama in 2008, is valued at $14 billion. It was included in the Recovery Act enacted in February 2009. 

The AOTC allows students to take a credit on their 2009 federal income tax return for up to $2,500 for eligible expenses for higher education paid out of pocket in the calendar year 2009. The credit is partially refundable – it can mean money back from the IRS for those with a total tax liability between zero and $2,500.

Generally, eligible expenses are tuition, books, fees and other direct higher-education expenses. Tuition and other expenses covered by scholarships and grants are not eligible for the AOTC credit. The AOTC will also apply for 2010 higher education expenses.

Details on the American Opportunity Tax Credit and other key tax provisions of the Recovery Act are available at the IRS Web site at www.IRS.gov/Recovery. Look for "Education Benefits," then follow "American opportunity credit" and other links. Also, you may contact your tax preparer.  This information is provided as a courtesy of Congressman Fattah's office and should not be considered legal tax advice.

SOURCE Office of Congressman Chaka Fattah

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