Congressman Chaka Fattah (D-PA-02), principal sponsor for The American Opportunity Tax Credit (AOTC), urges college students and their families to start gathering documents on their college expenses for 2012 so they can file for this important tax credit designed to make higher education more affordable.
The AOTC, introduced and adopted as part of President Obama's recovery program in 2009, provides up to $2,500 per year as a refundable tax credit for tuition, textbooks, fees and other higher education expenses for working families, low and middle income students.
"The American Opportunity Tax Credit has helped put college education within the reach of millions of students who would otherwise face significant financial hardship," said Fattah, a leader in Congress for educational opportunity and equity. "I am pleased that the strides we have made toward increasing college affordability will continue."
In its first year the AOTC assisted 12.5 million students with tax credits totaling $14 billion for meeting their college expenses, with similar benefits in ensuing years. That record of success led Congress to extend the credit for an additional five years -- until 2017 - as part of the so-called "fiscal cliff" legislation approved earlier this month.