Education Tax Credits, Maybe

As part of Obama’s negotiations about tax policy for this year he’s trying to extend some of the Bush tax cuts: those that allow tax credits for college expenses. According to an article by Jennifer Waters in the Wall Street Journal:

The president, who says he wants the U.S. to lead the world with the highest proportion of college graduates by 2020, is including a provision in his 2011 budget to keep the American Opportunity Tax Credit in play past this year and expand it to also cover a student’s junior and senior years.

The American Opportunity Tax Credit… replaced the Hope Scholarship credit as a bigger version that provided a maximum benefit of $2,500 per student—$700 more than the Hope credit….The credit is available on a phase-out level to those making up to $90,000 in modified adjusted incomes, or $180,000 for joint filers.

In 2009 some 12.5 million American students received the tax credit, at a total cost of $8.7 billion. This is according to a Treasury Department report about the tax credit released on Tuesday.

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer