ARRA Education Tax Credit for 2009 & 2010

Under the American Recovery and Reinvestment Act (ARRA), more families will qualify for a tax credit to pay for college expenses.

For tax years 2009 and 2010 the new credit modifies the existing Hope Credit, making it available to a broader range of taxpayers, including many with higher incomes. It also adds required course materials to the list of qualifying expenses and can be used for four years instead of only two. The maximum annual credit is $2,500 per student. The full credit is available to individuals whose modified adjusted income is $80,000 or less, or $160,000 or less for married couples filing a joint return.