New tax laws to benefit students
Victoria Farlow
Issue date: 3/12/10 Section: News
As students begin to prepare their taxes for 2009, they should be aware of new credits that can help them get up to $1,000 back on their return.
In February of 2009, as a response to the economic crisis, Congress passed the American Recovery and Reinvestment Act of 2009.
This act along with the Hope Credit and American Opportunity Credit will allow students to receive a lot more money back on their tax returns than in previous years.
"An average student gets $1,500 credit but can get up to $2,500," Notary and Tax Preparer Art Aguirre said.
Aguirre, who owns Art's Income Tax Service in Whittier said that the new act hasn't been publicized enough and that there is much that students are unaware of.
"It's too bad that students really don't know about Obama's new educational credits," Aguirre said. "Hopefully by next year they will."
According to Tax Professional and H&R Block Office Coordinator, Gabriela Romero, the Hope Credit has been enhanced this year and students can take advantage of it for the first four years of their post-secondary education.
The American Opportunity Credit is what is giving students back the most money.
Students can claim a maximum of $2,500 in credits and forty percent of that is refundable; thus students can get up to $1,000 in return.
In the past, very little educational costs could be deducted from taxes but now the American Opportunity Credit will allow students to claim not only the cost of text books bought at campus bookstores but also all books bought outside of the institution as well as the cost of parking and any supplies purchased for school.
"Supplies can include pens, pencils, calculators, paper, notebooks, etc.," Aguirre said. "I would even go as far to say laptops are included."
Aguirre says it's imperative that students save all receipts when buying school supplies.
"Students must keep their receipts," Aguirre said. "Save, save, save your receipts."
Romero encourages students to educate themselves and ask questions.
"It helps to have a tax professional by your side to file your taxes," Romero said. "We know all the deductions and tax laws. That's what we're here for."
According to Romero, it is as little as $68 to file a 1040EZ at H&R Block and there is no charge to walk in and ask questions.
Licensed Tax Professional and H&R Block Manager, Maria Macias also said that students should get educated and never be afraid to ask questions.
"There's a lot of new credits and tax law changes this year," Macias said. "Seek help and get back all you can."
"In this economy it is important for students to take advantage of what President Obama has done for them," Aguirre said. "Maybe with these credits [students] won't be as stressed and can focus on education."
In February of 2009, as a response to the economic crisis, Congress passed the American Recovery and Reinvestment Act of 2009.
This act along with the Hope Credit and American Opportunity Credit will allow students to receive a lot more money back on their tax returns than in previous years.
"An average student gets $1,500 credit but can get up to $2,500," Notary and Tax Preparer Art Aguirre said.
Aguirre, who owns Art's Income Tax Service in Whittier said that the new act hasn't been publicized enough and that there is much that students are unaware of.
"It's too bad that students really don't know about Obama's new educational credits," Aguirre said. "Hopefully by next year they will."
According to Tax Professional and H&R Block Office Coordinator, Gabriela Romero, the Hope Credit has been enhanced this year and students can take advantage of it for the first four years of their post-secondary education.
The American Opportunity Credit is what is giving students back the most money.
Students can claim a maximum of $2,500 in credits and forty percent of that is refundable; thus students can get up to $1,000 in return.
In the past, very little educational costs could be deducted from taxes but now the American Opportunity Credit will allow students to claim not only the cost of text books bought at campus bookstores but also all books bought outside of the institution as well as the cost of parking and any supplies purchased for school.
"Supplies can include pens, pencils, calculators, paper, notebooks, etc.," Aguirre said. "I would even go as far to say laptops are included."
Aguirre says it's imperative that students save all receipts when buying school supplies.
"Students must keep their receipts," Aguirre said. "Save, save, save your receipts."
Romero encourages students to educate themselves and ask questions.
"It helps to have a tax professional by your side to file your taxes," Romero said. "We know all the deductions and tax laws. That's what we're here for."
According to Romero, it is as little as $68 to file a 1040EZ at H&R Block and there is no charge to walk in and ask questions.
Licensed Tax Professional and H&R Block Manager, Maria Macias also said that students should get educated and never be afraid to ask questions.
"There's a lot of new credits and tax law changes this year," Macias said. "Seek help and get back all you can."
"In this economy it is important for students to take advantage of what President Obama has done for them," Aguirre said. "Maybe with these credits [students] won't be as stressed and can focus on education."
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