9 Ways to Get Huge Tax Credits

3) Attend a Four Year University Program

Qualified students at a four year university can receive the American Opportunity Tax Credit for pursuing a college education. The credits maxes out at $2,500 per tax year, however, it is applied in consideration of the cost of tuition, books, room and board, classroom materials, and other designated education expenses. Students can claim the credit for up to four active school years and must be free of any felony or drug convictions. In order to qualify for the American Opportunity Tax Credit, the student’s or parents’ total adjusted gross income should not exceed $80,000 for single filers or $160,000 for married or joint filers. In 2012, the American Opportunity Tax Credit was extended until 2017 for qualifying tax payers via the American Taxpayer Relief Act. The number of years an individual could claim the credit was also recently expanded from two years to four in effort to support those seeking a higher education.