Geithner Says Tuition Tax Credit Will Help 9.4 Million Families
U.S. Treasury Secretary Timothy F. Geithner said today that 9.4 million American families will benefit this year from a tax credit designed to ease the cost of college tuition and fees.
The Treasury Department expects to extend $18.2 billion in tax relief this year under the program, known as the American Opportunity tax credit. The initiative, which will remain in place through 2012, provides a maximum tax credit of up to $2,500 a year, and the average participating family is expected to receive a credit of $1,900, the department said.
“For parents and students struggling to pay rising tuition bills, or pay off mounting student debt, this partially refundable tax credit will make a real difference,” Geithner said in a joint statement with Education Secretary Arne Duncan, released by the Treasury today.
Treasury analysis shows “the maximum available AOTC credit will cover about 80 percent of tuition and fees at the average two-year public institution and about one-third of tuition and fees at the average four-year public institution this year,” the statement said.
To contact the reporter on this story: Rebecca Christie in Washington at rchristie4@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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