Rock Valley College
Rockford, Illinois

American Opportunity Tax Credit

Receive tax credits for textbooks, tuition and fees

Check out the American Opportunity Tax CreditThanks to the "American Opportunity Tax Credit", under The American Recovery and Reinvestment Act of 2009 and extended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, a tax credit of up to $2,500 each year has been authorized for out-of-pocket higher education expenses for course materials, tuition, and fees for 2009 through 2012.

American Opportunity Tax Credit At A Glance

  • In 2009 through 2012, tax credit of up to $2,500 of the out-of-pocket cost of tuition and related expenses including course materials paid during the taxable year.

  • Eligible for the first four years of college
  • 100% of the first $2,000 and 25% of the next $2,000.
  • 40% of the credit is refundable with the maximum refundable amount of $1,000.
  • Phase-out for taxpayers with adjusted gross income in excess of $80,000 or $160,000 for married couples filing jointly (AGI phase out limits are $90,000 individual, $180,000 married couples filing jointly).
  • Helps an estimated 4 million additional students attend college than the previous tax credit.
  • $13.907 billion in estimated benefits for students and families in 2009 and 2010.
  • AOTC recipients in 2009 received an average tax credit of over $1,700.
  • 4.5 Million Students and Families Received a Tax Refund from the AOTC in 2009 with an average value of $800.
  • President Obama has proposed to make credit permanent.

You are encouraged to keep your course materials receipts and transcripts.  It could be worth up to $2,500!