The American Opportunity Tax credit can be used for the upcoming 2009 & 2010 school year. Unlike the original Hope Credit, the American Opportunity Tax credit includes items such as text books and supplies for college courses - so you will need to save your receipts to claim the credit. Individuals earning up to $80,000 and couples up to $160,000 can file for the credit. Many who file can earn up to the maximum of $2500 - which is $700 more than the original Hope credit.
Additionally you will need to file Form 8863 - which you can either get from the IRS or if you are using tax software, it will be included. Furthermore, the tax software can determine which is the best credit for you to use.
For more information contact your local IRS office.
