The American Opportunity Tax Credit is a significant improvement over the previous Hope Credit that was implemented under the American Recovery and Reinvestment Act (ARRA). Think of it as the Post 9/11 GI Bill upgrade of the MGIB, without all the complications.
If you have yet to begin or are currently enrolled in your first four years of college education, then the American Opportunity Tax Credit could save you substantial sums of money by allowing you access to thousands of extra education dollars each year.
And if you are looking to enroll at one of the top Military Friendly Schools, be sure to consider some of our favorites: Colorado State University Global Campus, Jones International University and Robert Morris University. Each of these schools offers significant discounts for military personnel and are experts at helping educate military students.
But remember that the American Opportunity Tax Credit is only worth applying for if you have significant tuition or other educational expenditures that are not already covered by your Post 9/11 GI Bill, MGIB, or other military financial aid programs.
Since the AOTC is meant to help cover money that would otherwise have to be paid out of the student’s or parent’s pocket, it does not overlap or allow you to double dip with other financial aid programs.
Qualified tuition and related expenses are:
Remember, you must reduce the qualified expenses by the amount of any tax-free educational assistance you received.
And because many Military Friendly Colleges and Universities still have hundreds to thousands of dollars left over in military education benefits even after their participation in the Yellow Ribbon Program, you’ll want to be sure to find out if you can qualify for the new American Opportunity Tax Credit if you need any additional tuition assistance! Don’t let this opportunity pass you by before it’s too late.
To read more about the AOTC program, visit the official page for the American Opportunity Tax Credit at the IRS Website.
Or for additional information about military education benefits, tuition assistance, and scholarships for military service members, please request our Free Military Education Handbook.