The American Opportunity Credit and the Lifetime Learning Tax Credit are programs available through the federal government to ease the burden of college costs. We encourage you to consult an expert tax advisor to discuss how the regulations apply to your particular situation, or that you review the tax laws and applicable regulations to determine whether the interest paid on your educational loan is deductible.
Find out more from the IRS
The American Opportunity Credit has made temporary expansions to the Hope Scholarship Tax Credit for tax years 2009 and 2010. The American Opportunity Credit covers four years of post-secondary education instead of just two. You may also claim the credit for books, supplies and equipment needed for a course of study, as well as tuition and fees. A family may claim up to $2,500 per tax year for each eligible dependent.
