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Old 02-01-2010, 04:48 PM
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american opportunities credit eligibility

I am trying to figure out if this credit applies to me. I have been attending college on and off for the past ten years. I have not yet completed a 4 year degree but I did complete a 2 year associate of arts. I am currently attending and planning to finish my 4 year degree this summer. Does this credit apply to me or is the tuition and fees deduction the way to go?

Josh



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Old 02-02-2010, 11:23 AM
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What is your W-2 income?

The tax program that you are using will usually pick the option that will generate the maximum tax benefit. Presumably, if your income is nominal, your software program will select the Hope credit that would yield you the maximum tax benefit.

The Hope credit will generate a tax credit, that is, actual dollars that can be refunded whereas the tuition deduction will result in a reduction in taxable income and generally speaking for taxpayers with a lower tax rate, the best option would be to select the hope tax credit.

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