Obama wants tax break for college students extended

[sabra]

Source: CNN

(CNN) - The American Opportunity Tax Credit helped soften the blow of college tuition for more than 12 million students last year, but it's due to expire at the end of this year unless President Barack Obama gets his way.

To remind Congress of the importance of extending the credit, top government advisers spoke to reporters Tuesday about why they believe the break is worth keeping around.

"(Obama) believes that it is important for this to be extended and for families to have the certainty and confidence that this will be there when they are making the choices about sending their children to college," said Gene Sperling, counselor to the Treasury Secretary.

Read more: http://politicalticker.blogs.cnn.com/2010/10/13/obama-wants-tax-break-for-college-students-extended/

[fascisthunter]

1. that's good

wish I had this when I was in college. Boy am I paying for the private students loans... but I am paying it off as fast as possible, thankfully I have a good job.

[Uben]

2. Why should we support educated democrats?

That is not the republican way? Keep em poor and working in our mines. Just goes to show you, if you let a person get smart, they wanna screw up the game. How in the hell do you expect the rich to get richer if they have to share with the middle class? Pshaw!

Let them eat cake! Wait, make that Ramen noodles. Cake is too good for em!

[barbtries]

3. i'm all for that

with a son living in the dorm and still just a freshman.

[The Backlash Cometh]

4. What tax break?

we get a tax break for college tuition?

[FrenchieCat]

6. Yes....

A big one!


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Eligible bills include college tuition, fees and books for you, your spouse or a dependent.

This year, the break isn't reduced until single filers earn more than $80,000 and married couples earn more than $160,000. It's lost completely at $90,000 in single income and $180,000 in joint income.

But that's based on adjusted gross income, which is the income you declare after subtracting "above-the-line" deductions for contributions to your 401(k) retirement plan, health savings accounts, any alimony and student loan interest you pay.

That means a married couple could be earning in the neighborhood of $200,000 and still get this lucrative break.

Also important for lower-income taxpayers is that this break is partly "refundable." What does that mean? Most breaks just give you back the tax that you paid through withholding. They typically stop benefiting you once your tax bill is reduced to zero. This one is 40% refundable, said Mark Luscombe, principal tax analyst with CCH Inc., a Riverwoods, Ill., publisher of tax information. That means it can provide as much as a $1,000 refund, even if you paid no federal income tax.
http://articles.latimes.com/2010/feb/28/business/la-fi-cover-side-college28-2010feb28

Honestly, I was not aware that college tuition was tax deductible. Your post got me all excited. But then I did some searching on the internet and came up with the following, from About.com:

The maximum amount of tuition and fees deduction you can claim is $4,000 per year. If your income is over $65,000 but under $80,000 (unmarried), then the maximum amount you can deduct is $2,000. For married couples filing a joint return, the phaseout range is over $130,000 but under $160,000. For income over these limits, you do not qualify to take the tuition and fees deduction.
http://talk.collegeconfidential.com/parents-forum/722400-college-tuition-irs-income-tax-deduction-question.html

[Liberal_Stalwart71]

5. He should do the same for graduate school students as well... n/t