Parents: Save those education receipts.
For the first time -- and for a limited time -- upper-middle-income parents will be able to take advantage of huge tax breaks for paying college bills.
This is thanks to a law that temporarily supplants the Hope Tax Credit with the far more lucrative and inclusive American Opportunity Tax Credit.
What's this law and how can you take advantage of it?
The American Opportunity Tax Credit is one of several generous tax breaks that were passed into law in February as part of the American Recovery and Reinvestment Act, aimed at stimulating the U.S. economy.
It provides a federal income tax credit equal to 100% of the first $2,000 in qualified education expenses and 25% of the next $2,000 in expenses per student for qualified families.
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