With all of the talk about the $250 2009 stimulus checks going out recently, there is a way for many of you to save money and get back a large refund this next April from this recently passed stimulus package.
One of the parts of the stimulus package was to provide a $2,500 tax credit, per student for this year. It isn’t a stimulus check but the value of it much greater then the $250 stimulus check going out this year or the $600 / $1200 stimulus check from last year.
What this $2,500 tax credit is a higher education tax credit that can be claimed by anyone going to college this year, or by parents paying for their son or daughter’s college tuition. There is nothing that you need to do special to fill out to apply for this, you already are eligible for this stimulus tax credit.
This tax credit will be a line on your 2009 tax return when you fill out your taxes for 2009 this coming April. The best part is, if you have more then one kid in school and you are still claiming them on your tax return, you can get a $2,500 tax credit for each one of them.
This is a tax credit, so you won’t necessarily get a “stimulus check” type check in the mail, unless you file your taxes and you didn’t owe any taxes, in which case you would get check up to $1000 from the IRS.
To qualify you have to spend at least $4000 in higher education tuition to get the full $2500, or else make sure you spend at least $2,000 to get a $2,000 tax credit.
There are rules to who is not eligible, those making over $90,000 a year or $180,000 jointly are not eligible and neither is anyone who is a student that has a felony drug conviction.
This may not be a stimulus check, however, it will help stimulate the economy this year through this following tax season.
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