American Opportunity Tax Credit

<p>I have been trying to learn what I can about this. Now is this the credit that expands and replaces the Hope Credit? I'm also wondering about the community service component which seems to get mentioned only rarely... and how would it work?</p>

<p>KESQ.com</a> Palm Springs, Coachella Valley - Weather, News, Sports: Proposed Plan: Affording College Costs with Community Service
Barack</a> Obama and Joe Biden: The Change We Need | Education</p>

<p>It is the one that is an expansion of the Hope credit. Is for 4 years instead of 2. $2500 instead of $1800 (100% of the first $2000 and 25% of the next $2000). Required books and supplies can be counted as well as tuition and fees (books and supplies cannot be counted with the current Hope). Partially refundable - meaning up to 40% ($1,000) can be payable even if there is no tax liability (Hope is not refundable - you can reduce tax but not get any excess paid to you).</p>

<p>I think the community service is something they are studying to see if it is viable to ask for it. I don't think it is in there as a requirement yet.</p>

<p>I looked at the link in your post. I think they have got some out of date information as the credit is not $4000 but $2500. The $4000 was something that was talked about during the campaigns, not what was passed in the stimulus bill.</p>

<p>Thanks, swimcatsmom. The community service piece is interesting. In principle I think it's a very good idea, but I get confused how it would be administered, plus if it's the parents getting the credit, then it seems a bit more complex when it would be the student doing the community service.</p>