Have you heard about the Obama Book Tax Credit?

Recently, the Obama administration launched economic stimulus package includes a new Textbook Tax Credit for which many South Mountain Community College students are eligible. This new government program will now reimburse students for up to 100% of the cost of required textbooks and other course materials.

For example, if your student has out-of-pocket course material expenses or tuition and fees during 2009 or 2010 and no other financial grant aid covers those expenses, they would be able to claim the expenses as a credit. For each student the credit is limited to $2,500.

In the past, the Hope and Lifetime Learning credits did not cover textbooks. This exclusion disadvantaged many students for which textbooks are a high proportion of their total costs of higher education. This stimulus bill creates the American Opportunity Tax Credit, which will credit 100% of a student?s first $2000 in tuition, fees, and course materials, and 25% of the next $2000. The credit is also 40% refundable, so even if a student doesn?t owe taxes, he or she can effectively get a 40% rebate from the federal government for all tuition, fees and course materials.

For more information, check out this website www.textbookaid.org.