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The Hope Credit has been renamed the
"American Opportunity Tax Credit." The credit can be up to $2,500 and up
to $1,000 of that credit amount may be refundable. The credit now
applies to the first 4 years of post-secondary education in a degree or
certificate program.
The credit is calculated
by taking 100% of the first $2,000 of qualified tuition and
related educational expenses and 25% of the next $2,000 of such expenses.
For tax year 2009, the credit is gradually
reduced if your modified adjusted gross income (MAGI) exceeds $80,000
($160,000 if married filing a joint return) and is completely eliminated
if your MAGI exceeds $90,000 ($180,000 if married filing a joint
return). |
