The Education tax credits to be taken on 2009 have been greatly expanded. There is now three types of credits. New this year is the American Opportunity Credit.
Income limits have been expanded to include adjusted gross income for married filing jointly up to $180,000 for the American Opportunity Credit. The Hope credit and the Lifetime Learning Credit have also been expanded. Also new this year are special rules for students in Midwestern Disaster Areas. Purdue University falls in this area. The rules are complex and you need to determine which credit and what expenses qualify to give you the best benefit.
Many tax software programs are not able to calculate the best method. Thousands of dollars are at stack. Don’t leave money on the table. See us as we will be able to take the pain out of tax filing for this year as well as help you plan for future college costs and its affect on your retirement.