Saturday, January 05 2013
Recovery Act Extenders. The Act extends for five years the following items that expired December 31, 2012:
- the American Opportunity tax credit, which permits eligible taxpayers to claim a credit equal to 100% of the first $2,000 of qualified tuition and related expenses, and 25% of the next $2,000 of qualified tuition and related expenses (for a maximum tax credit of $2,500 for the first four years of post-secondary education);
- the $3,000 income level for claiming the refundable child credit; and
- expansion of the higher earned income tax credit amounts for eligible taxpayers with three or more children, and increases in threshold phaseout amounts for singles, surviving spouses, and head of households.