2011 Tax Credit for College Tuition
For 2010 through 2012, the Hope credit is replaced by a new credit. Now
called the American Opportunity Tax Credit, it provides a credit of up
to $2,500 per student per year for four years of college. It now also
covers the cost of books, and begins to phase out at $80,000 of Adjusted
Gross Income for single filers and $160,000 for joint filers. If the
credit is more than your income tax liability, 40 percent of it is
refundable. Also, the full credit is allowed against the Alternative
Minimum Tax.
