News from the Financial Aid Office

The new American Opportunity Tax Credit, which expands and renames the existing Hope Credit, may be claimed for up to $2,500 of the cost of tuition, fees, books and related course expenses on 2009 and 2010 federal income tax returns.

The credit is equal to 100 percent of the first $2,000 spent and 25 percent of the next $2,000 per student each year. The credit amount begins to phase out if an individual makes more than $80,000, or $160,000 filing jointly.

A full 40 percent of the credit is refundable, so even if you owe no tax you may get as cash back up to $1,000 of the credit for each eligible student. Visit www.irs.gov/recovery for more information.