Special National Association of College Stores web site explains benefit
OBERLIN, Ohio, Jan. 20, 2011 /PRNewswire-USNewswire/ -- Lost in the rush to pass the Tax Relief, Unemployment Insurance and Job Creation Act of 2010 last month was the significant fact that the legislation also continues an important reform in the tax code that benefits college students and their families.
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The legislation extends the American Opportunity Tax Credit (AOTC) for an additional two years. The National Association of College Stores (NACS) and its more than 3,000 member stores are urging students and their families to take advantage of the measure, which makes the cost of textbooks and other course materials eligible for a tax credit in 2009 through 2012. Families should consult tax preparers or the IRS on their eligibility for this important credit and keep records of eligible course material expenses incurred.
The American Recovery and Reinvestment Act of 2009, which made textbooks and course materials eligible for a tax credit for the first time, would have ended in tax year 2010 without the extension. The credit covers textbooks and other course material expenses – as well as tuition and fees not covered by scholarships or grants up to $2,500 each year for the first four years of college. Forty percent of the credit is refundable.
According to an October 2010 study by the Treasury Department, AOTC recipients in 2009 received an average tax credit of more than $1,700. In addition, 4.5 million students and families received a tax refund from the AOTC in 2009 with an average value of $800.
"NACS and its members work hard to help make textbooks and course materials as affordable as possible, and have long been advocates of including course materials in tax credits. That is why NACS created www.textbookaid.org: to provide individuals with accurate, easy-to-understand information about how to best take advantage of this beneficial program," said Rich Hershman, NACS director of government relations.
NACS developed its easy-to-navigate web site, brochures, and Facebook page in partnership with the Internal Revenue Service. It includes a summary of the AOTC, explanatory examples, answers to frequently asked questions about the credit, and direct links for further information from the IRS.
About NACS
Headquartered in Oberlin, Ohio, the National Association of College Stores (NACS) is the professional trade association representing the collegiate retailing industry. NACS represents more than 3,000 collegiate retailers that serve America's college students while supporting the academic missions of higher education institutions everywhere. Additional information on NACS can be found online at www.nacs.org.
SOURCE National Association of College Stores
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