Free Money For College Students
Free Money For College Students
College. Tuition, books, housing, computer, food, etc… Sound familiar? These items are just a few of the many frequent expenses encountered in a student’s college career. The government made education credits to try and offset these expenses by giving tax benefits to them. From a tax standpoint, Education credits have usually been nonrefundable, meaning they can only reduce your tax, dollar for dollar until your tax is zero and then the remainder disappears. However, thanks to the American Recovery and Reinvestment Act of 2009 it is possible to get a REFUND through education credits. Some may have heard of the “Hope Credit” or the “Lifetime Learning Credit,” since these education credits have been around for many years.
Although not refundable, the “Lifetime Learning Credit” is not limited to a certain amount of years as other credits are, nor does it require the pursuit of a degree or educational credential. You can reduce your tax by up to $2,000 on the first $10,000 of qualified expenses. This also does not vary with the number of eligible students in a family, so if you have multiple student dependants, the expenses are combined toward the $10,000 of qualified expenses.
With the new “American Opportunity Tax Credit” you can get money back to help lift the burden of college expenses. In most situations, this credit replaces the old “Hope Credit”* and widens the scope of people who qualify for the credit. Through this credit, you can write off the first $2,000 of qualified college expenses.sup>1. Then you can take $500 of the next $2,000 of qualified expenses. This can be claimed for the first FOUR years of post-secondary education instead of the previous two years under the “Hope Credit.” So under the “American Opportunity Credit,” you have up to $2,500 to reduce your tax to zero or below, and it is available for four years of college instead of two, and 40% of the credit is refundable if you have a higher amount of credit than you have tax. That means that an amount up to $1,000 could be refunded to you.
See www.groco.com/readingroom/2009_dependentcredits.aspx for more information on the Educational Credits phase-outs, comparisons, and much more!
*Midwestern students in disaster areas can elect to apply previous rules of the Hope credit.
1 Qualified expenses include tuition, books, and mandatory fees. The American Recovery and Reinvestment Act of 2009 has also included course supplies and equipment necessary for the course of study even if they are not purchased from your school. Section 529 Education Plans also include computers and computer technology in qualifying college expenses.
We hope you found this article about “Free Money For College Students” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
In an age where technological innovation permeates every facet of our lives, the intersection of art and artificial intelligence presents a legal and ethical quagmire. The recent ruling by US District Court Judge Beryl A. Howell declaring AI-generated artwork ineligible for copyright has ignited heated debates among artists, tech enthusiasts, and legal experts. Artificial Intelligence…
American Dreams Impact Legacy Conference 2023 Unlock the secrets to building multi-generational wealth and intentional family legacies on September 19th at 10 AM PST. Dive deep into understanding the importance of crafting your family’s legacy with intent, rather than leaving it to chance. This event is your chance to gain insights from leaders who’ve mastered…
This week Host Alan Olsen interviews Paul Callister, a dynamic individual with a diverse background, takes us on a journey through his educational path from chemical engineering to philosophy, followed by his transition from practicing law to becoming a law librarian and professor. As a former attorney in a family law firm, Paul sought to…