The American Opportunity Tax Credit should be extended

by Tammi
(Columbia, SC, USA)

This tax credit should be extended because the economy is so bad, that people have been forced to go back to school. The price of everything is going up, but salaries are not. In fact, the raises are held up, bonuses are nil, and people in general are suffering. The tax credit actually should be higher.

In my case, I have gone back to school after a divorce which cost me so much already and my daughter is also in college. We are struggling, and I don't just mean me, I am speaking for America. I don't even think about how I will pay back the student loans, I just go to school, because I know that's the only way I will increase my income and also opportunities for growth in my field. I never thought the recession would hit the health care field, but it has. I am grateful that I have a job, and though I feel stuck right now, I know that when I finish school, things will be better for me.
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ANSWER:
The sad thing is that because of a few bad apples years ago, parents are no longer given a break on the FAFSA when they and their children are both in college. That's happening more and more because of the recession, and changing that part of the law should be a priority. After all, everything is computerized now and it should be easier to spot fraud.

At least you are not penalized that way with the college tax credit. You can claim the full credit for both you and your daughter (if she is your dependent).