Federal Tax Issues

Visit the IRS on YouTube

The Internal Revenue Service (IRS) has a dedicated channel on YouTube.com.  Visit their page to view videos on a wide range of topics.

Current Education Benefit Programs

Tax benefits may be available to individuals who are saving or paying education costs. We encourage you to  visit the  IRS'  Tax Benefits for Education Information Center.  

Another helpful resource is the Tax Benefits Guide published by the National Association of Financial Aid Administrators.

New for 2009 and 2010

 The American Recovery and Reinvestment Act of 2009 (H.R. 1)

Under the American Recovery and Reinvestment Act (ARRA) signed into law by President Obama on February 17, 2009, textbook and other course material expenses incurred in 2009 and 2010 that are not covered by scholarship or grant aid may be counted towards the newly created tax credit called the American Opportunity Tax Credit on that year’s tax return.

According to the IRS, the new credit temporarily replaces and expands the previous Hope Credit for tax years 2009 and 2010, making the American Opportunity Tax Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax.

It also:
  • Adds required course materials to the list of qualifying expenses
  • Allows the credit to be claimed for the first four post-secondary education years instead of two

Many of those eligible will qualify for the maximum annual credit of $2,500 per student, which is more than $700 higher than the old Hope Credit, and, for the first time, will provide a partial refund of up to $1,000.

  • American Opportunity Tax Credit Web Site -The National Association of College Stores has created several new resources for students and parents to increase awareness of the value of the American Opportunity Tax Credit. The American Opportunity Tax Credit, part of the Recovery Act passed earlier this year, temporarily expands and replaces the Hope tax credit in a number of important ways

  • How to Get Back $2,500 in Tuition Money - from the May 5, 2009  issue of U.S. News and World Reports

"Do I Have to File A Tax Return?"

 

A College Student's Guide to Taxes:To File or Not to File provides a user friendly overview for students

Publication 17 from the Internal Revenue Service , Your Federal Income Tax- For Individuals,  covers the general rules for filing a federal income tax return. It supplements the information contained in your tax form instruction booklet. It explains the tax law to make sure you pay only the tax you owe and no more.

The Volunteer Income Tax Assistance ("VITA" ) Program

The VITA Program offers free tax help to low- to moderate-income (generally, $42,000 and below) people who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country.To locate the nearest VITA site, call 1-800-829-1040.

The National Community Tax Coalition

TheNational Community Tax Coalition seeks to improve the economic well being of low- and moderate-income individuals, families, and communities by building a movement to dramatically increase access to tax credits and benefits and asset-building opportunities. Find out what they are doing in your state

Projected changes for 2009 and 2010

While we do not know many details at this time, newspaper articles have indicated that provisions in the American Recovery and Reinvestment Act  (see above)  may provide some benefits to students who file a federal tax return (even if they are not required to file one). We will post information on this topic as we receive it

 Other Internal Revenue Service ("IRS" ) Publications and Resources

Need More Help?

Loyola University New Orleans College of Law will again offer the Volunteer Income Tax Assistance Program this year to provide tax preparation assistance for people with low to moderate incomes

Updated October 30, 2009