Among the many tax breaks waiting for Congress to rescue or let tumble off the fiscal cliff is more than $18 billion in savings for families who pay college and university tuition.
The American Opportunity Tax Credit expires on December 31st, and, with it, financial relief averaging $1,545 per recipient who pays for college.
Compounding the dilemma is the fact that an increasing portion of these tax breaks goes to families whose adjusted gross income is between $100,000 and $180,000, according to calculations by the College Board.
They get 23 percent of the savings, or $4.3 billion a year. In all, 39 percent of the tax break, which was meant to help low-income students, is being steered to families who make $75,000 or more per year.
The federal tax credit goes to about 4.5 million students and their families. They can deduct up to $2,500 of the cost of tuition, fees and course materials for the first four years of attending a postsecondary educational institution.
Read more here about the billions in financial aid going to college students who the government says don’t need it.
At The Hechinger Report, we publish thoughtful letters from readers that contribute to the ongoing discussion about the education topics we cover. Please read our guidelines for more information. We will not consider letters that do not contain a full name and valid email address. You may submit news tips or ideas here without a full name, but not letters.
By submitting your name, you grant us permission to publish it with your letter. We will never publish your email address. You must fill out all fields to submit a letter.