Higher Education
By David Strunk
The American Recovery and Reinvestment Act of 2009 that was passed by Congress on February 17, 2009 increased and expanded the Hope Scholarship Credit for years 2009 and 2010.
- The credit is now $ 2,500 per student (previously it was only $ 1,800)
- It is available for four years of postsecondary education (previously it was only two years)
- The credit is now a 40% refundable credit (previously it was nonrefundable)
- The phase-out range is increased as follows:
- Single Filers $ 80,000 to $ 90,000 (previously it was $ 50,000 to $ 60,000)
- Joint Filers $ 160,000 to $ 180,000 (previously it was $ 100,000 to $ 120,000)
Also new is that Section 529 Plans for 2009 and 2010 can pay for computers. Computers and related technology qualify as higher education expenses for distributions from 529 plans.