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The IRS offers American Opportunity Tax Credit (AOTC) to qualified students with up to $ 2,500 credits to lower tax bill. No worries if you only used a small portion of the tax credit because 40% of the remaining credit amount, up to $ 1,000 can be refunded to you.
Photo: Google
5 Criteria To Pass
Only a few American students knew about IRS’ American Opportunity Tax Credit (AOTC). It aids the qualified student’s expenses by lowering tax bill up to $ 2,500 a year. But if a student owes tax, will you be happy receive $ 1,000 cash instead?
As summarized by The U.S. Sun, to be eligible to AOTC, you should be able to mark check the following:
- Pursuing a degree or other recognized education credential
- Enrolled at least half time for at least one academic period beginning in the tax year.
- Not have finished the first four years of higher education at the beginning of the tax year.
- Not have claimed the AOTC or the former Hope credit for more than four tax years.
- Not have a felony drug conviction at the end of the tax year
If you could pass the above criteria, you qualified for a refund of 40% of your remaining tax credit, up to $1,000. Note that your modified adjusted gross income must not exceed $80,000 or $160,000 for married couples.
Qualified students can apply by getting Form 1098-T, Tuition Statement, from your educational institution. And to claim your AOTC, fill in Form 8863 and add in your tax return.
READ ALSO: Oklahoma Lawmakers Push For Grocery Tax Cut Amid Rising Inflation Concerns
Still Needing Cash?
There are other forms of payments to apply for. As reported by the U.S. Suns, the state of California is giving out $920 a month to expectant mothers in Humboldt County for 18 months, no-strings-attached.
The state started receiving applications on December 11 and it will continue to do so until May 30 or when all slots are filled.
And like everything, there are criteria to pass.
READ ALSO: IRS Promises Better Service And New Changes For Tax Season
