Spring Break
Textbook relief maybe on horizon for students
Federal stimulus package provides school supply tax breaks
By: Michael Allen
Issue date: 3/6/09 Section: News
Students in middle and lower class Texas families will be able to get a tax break to purchase textbooks and materials thanks to the American Opportunity Tax Credit, included in the federal stimulus package President Barack Obama signed.
"This is applicable to all students and families who make under $160,000 in a joint marriage, or under $80,000 for a single parent," said National Assistant of College Stores Charles Schmidt.
The stimulus packages allows students to write off up to $2,500, with $1,000 of the amount refundable.
"Students will be able to write off a good portion of their books in refundable taxes," Schmidt said.
To apply for this tax break, Schmidt said it is wise to keep receipts for reporting reasons. The program will most likely be applied for through the IRS, and possibly the Free Application for Federal Student Aid (FAFSA).
"While textbooks and other course materials are both required and vital to a student's academic success, they are rarely covered by traditional financial aid," said Richard Hershman, director of government relations for the National Association of College Stores (NACS).
An estimated 346,000 students in Texas will be eligible for the tax break.
After years of proposing packages to enact such a measure, it was Rep. Lloyd Doggett who provided the final provisions in the House of Representatives and gave it the green light to be in the stimulus plan.
"Combined with proactive campus-based efforts already underway across the state of Texas to make course materials more affordable, the new tax credits will go a long way to help students succeed in school and in the economy," Hershman said. "The American Opportunity Tax Credit means real financial relief for Texas students and families struggling to pay for their education."
"This is applicable to all students and families who make under $160,000 in a joint marriage, or under $80,000 for a single parent," said National Assistant of College Stores Charles Schmidt.
The stimulus packages allows students to write off up to $2,500, with $1,000 of the amount refundable.
"Students will be able to write off a good portion of their books in refundable taxes," Schmidt said.
To apply for this tax break, Schmidt said it is wise to keep receipts for reporting reasons. The program will most likely be applied for through the IRS, and possibly the Free Application for Federal Student Aid (FAFSA).
"While textbooks and other course materials are both required and vital to a student's academic success, they are rarely covered by traditional financial aid," said Richard Hershman, director of government relations for the National Association of College Stores (NACS).
An estimated 346,000 students in Texas will be eligible for the tax break.
After years of proposing packages to enact such a measure, it was Rep. Lloyd Doggett who provided the final provisions in the House of Representatives and gave it the green light to be in the stimulus plan.
"Combined with proactive campus-based efforts already underway across the state of Texas to make course materials more affordable, the new tax credits will go a long way to help students succeed in school and in the economy," Hershman said. "The American Opportunity Tax Credit means real financial relief for Texas students and families struggling to pay for their education."
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